Aveanna Healthcare Holdings (AVAH) is facing secular tailwinds that back its growth trajectory, as evidenced by the company's increased fiscal 2026 outlook, RBC Capital Markets said in a Friday note.
The company's management reiterated its view that private duty nursing, or PDN, appears insulated from potential Medicaid budgetary pressures related to the One Big Beautiful Bill Act, according to the note.
Aveanna is also positioned to benefit from the upcoming PDN rate increase in California, as the state's 2027 budget includes a major investment in pediatric private duty nursing rates effective Jan. 1, 2027, RBC said.
The investment firm expects the company's private duty services volumes to accelerate in the second half of 2026 and increase materially in 2027.
RBC also noted Aveanna's ongoing preferred payor momentum across all of its segments, with the number of preferred-payor agreements nearing or meeting its 2026 targets.
RBC raised its price target on Aveanna Healthcare Holdings to $16 from $10, with an outperform rating.
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