USPH Stock Forecast & Price Target

US Physical Therapy has demonstrated a solid growth trajectory, with commercial pricing increasing by 2.2% sequentially and projected to reach approximately 3% without specific regional impacts. Additionally, the company’s industrial injury prevention (IIP) revenue saw significant growth, rising 22.2% overall and 18.4% when excluding mergers and acquisitions, showcasing robust operational performance. The net rate for the recently acquired Metro business has improved to $107.50 from $101, indicating successful integration and value generation from acquisitions.

US Physical Therapy Inc has experienced a 0.6% decline in its key revenue metric, which decreased from $84.46 to $83.95 year-over-year, indicating a potential stagnation in growth. Additionally, the company has faced consistent reimbursement cuts over the last five years, amounting to a $20 million adverse impact on profitability, which raises concerns about its revenue sustainability. Furthermore, the operational expenses, particularly rent and clinic-related costs, slightly exceeded estimates at 20.2% of revenue, which could indicate rising cost pressures that may further erode margins.