OPCH Stock Forecast & Price Target

Option Care Health is favored for its dominant position in home and alternate-site infusion services, where acute therapy momentum has delivered high-single-digit revenue growth and higher gross margins, while ambulatory facilities improve labor efficiency and support margin expansion as utilization rises. The company’s long-term fundamentals remain intact despite near-term noise, with management expecting Stelara and biosimilars to fall below 1% of 2026 revenue and gross profit, plus advanced practitioner capabilities expanding across 28 of 175 facilities to deepen clinical reach and market access. Even with 2026 headwinds, the business is still projected to generate strong adjusted EBITDA of $480 million to $510 million, around $300 million of annual FCF on average for 2026-2028, and benefit from disciplined capital allocation, including $17.5 million of first-quarter buybacks.

Option Care Health is facing a negative fundamental outlook because its latest quarter showed revenue of $1.35 billion, below both the $1.39 billion estimate and the $1.40 billion consensus, with only 1.3% year-over-year growth and chronic therapy weakness tied to Stelara-related patient census declines. Management also raised expected H/W from CID/Stelara to $55 million from $25 million to $35 million while guiding 2Q adj. EBITDA to $112 million to $115 million versus $122 million consensus, suggesting a steeper-than-normal second-half ramp that appears difficult to execute. Beyond the quarter, the company operates in a highly regulated, reimbursement-sensitive, and competitive specialty pharmacy market, and the reduced 2026 and 2027 adj. EBITDA and revenue estimates imply slower core growth and greater downside risk.