
TOI Stock Forecast & Price Target
TOI Analyst Ratings
Bulls say
The Oncology Institute Inc. is poised for financial growth due to its strategic partnership with Helios, which is expected to enhance margins significantly by 2026 and 2027, and align with an overall trend towards an expansion of margins back to the 12%-15% range as contracts mature. Growth potential in its fee-for-service (FFS) segment is supported by an increasing oncology market and new market penetrations, with robust dispensing revenue anticipated, particularly following the opening of a new pharmacy in California that adheres to state regulations. Additionally, the transition towards value-based care arrangements provides a pathway for higher incremental margins, while the elimination of the DIR fee has improved expense visibility, contributing to a rebound in margins expected in 2025.
Bears say
The Oncology Institute Inc. has faced significant challenges in its financial performance, primarily due to contract losses in 2024 that adversely affected gross margins, along with a lack of aggressive growth projections compared to industry trends. Additionally, the company experienced a detrimental impact on dispensary margins attributed to the elimination of DIR fees, resulting in a $15 million headwind for this segment. Market pressures such as increased drug prices and the financial health of payer partnerships further threaten the company's ability to achieve sustainable profitability, as indicated by the expectation of only reaching break-even EBITDA by late 2025.
This aggregate rating is based on analysts' research of The Oncology Institute and is not a guaranteed prediction by Public.com or investment advice.
TOI Analyst Forecast & Price Prediction
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