BMO Capital Maintains Bullish 12%+ BrightSpring EBITDA Growth Outlook on Drug Contract Wins, Generic Conversions

BrightSpring Health Services Inc. (NASDAQ:BTSG) is one of the best new stocks to invest in. On November 13, BMO Capital initiated coverage of BrightSpring Health with an Outperform rating and $40 price target. BMO Capital maintains its three-year outlook for BrightSpring to achieve 12%+ EBITDA growth, driven by multiple factors. The firm anticipates a long-term opportunity for BrightSpring to secure additional limited distribution drug contracts and benefit from an increase in generic drug conversions.

Earlier in its Q3 2025 earnings report, BrightSpring Health Services announced that the total company revenue reached $3.3 billion, which marked a 28% increase year-over-year. Adjusted EBITDA grew even faster at 37%, totaling $160 million, driven by strength across all businesses. This performance resulted in an EBITDA margin of 4.8%, up 0.3% from both the prior year and the previous quarter, primarily due to disciplined operating expense management and a modest shift toward generics in the pharmacy mix.

BMO Capital Maintains Bullish 12%+ BrightSpring EBITDA Growth Outlook on Drug Contract Wins, Generic Conversions

Following this strong execution, management raised the full-year 2025 Adjusted EBITDA guidance range for the second time, now targeting $605 to $615 million, reflecting 31.5% to 33.7% growth over the full year 2024. Total revenue for 2025 is expected to be in the range of $12.5 to $12.8 billion

BrightSpring Health Services Inc. (NASDAQ:BTSG) operates as a home and community-based healthcare services platform in the US. It has segments: Pharmacy Solutions and Provider Services.

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