BMO Capital Initiates Aveanna Healthcare Holdings (AVAH) With a Buy

​Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) is one of the Hottest Small Cap Stocks to Buy Now. On November 13, BMO Capital initiated coverage of Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) with an Outperform rating and a $11 price target.

​The firm noted that the stock has gained approximately 130% since August, supported by strong Q2 and Q3 results. The firm highlighted that the company has benefited from state reimbursement increases, disciplined cost control, and preferred payer expansion. These efforts have also helped lower leverage, commented the analyst from BMO Capital.

​The bullish sentiment follows the release of fiscal Q3 2025 results by Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) announced on November 6. The revenue grew by 22.2% year-over-year to $621.9 million and topped analysts’ consensus by $30.76 million, along with an EPS of $0.15, also surpassing estimates by $0.01. Management attributed revenue growth to a $104.9 million increase in PDS segment revenue and a $8.3 million increase in HHH segment revenue. However, the revenue was partially offset by a $0.2 million decrease in MS segment revenue.

​Notably, Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) grew its adjusted EBITDA by 67.5% year-over-year to $80.1 million during the quarter. The growth was attributed to improved rate, volume, environment, and continued cost savings initiatives. In addition, taking confidence from the improved momentum, management also raised its full-year guidance. It expects full-year revenue to surpass $2.375 billion, up from the previous anticipation of $2.3 billion.

​Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH) provides diversified home care services, including private duty nursing, home health and hospice care, and medical solutions such as enteral nutrition supplies.

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Disclosure: None. This article is originally published at Insider Monkey.