Addus HomeCare (ADUS) Stock Forecast & Price Target

Addus HomeCare Corp has reported significant organic revenue growth in its Personal Care segment, showcasing an increase of 12.3% year-over-year in 2023, followed by projected growth rates of 7.7% in 2024 and 7.4% year-to-date in 2025. The recent finalization of a 2.6% increase in Medicare Hospice rates effective October 2025 further supports revenue acceleration in the Hospice segment, which is expected to achieve growth of 5% to 7%. Additionally, potential mergers and acquisitions (M&A) activity, along with operational improvements from recent leadership changes, are likely to enhance both short- and long-term growth prospects for the company.

Addus HomeCare Corp has reported same-store declines in its personal care segment due to ongoing Medicaid redeterminations, which have created administrative bottlenecks that hinder patient onboarding and increase discharge rates. The company’s reliance on Medicaid funding, which accounted for approximately 97% of segment revenues in 2025 YTD, introduces significant uncertainty stemming from potential changes in the funding environment under the One Big Beautiful Bill Act (OBBBA). Despite maintaining a business model that positions it favorably for long-term demand, the stock performance of Addus HomeCare has lagged behind the broader post-acute care market, indicating a disconnect between its equity valuation and its underlying financial fundamentals.