Jefferies Upgrades Chemed to Buy, Lifts Price Target to $620

Jefferies upgraded Chemed to buy from hold and raised its price target to $620 from $520 after the company’s third-quarter results beat analyst expectations. Jefferies analyst Brian Tanquilut said operating issues had eased, improving the outlook for more predictable earnings growth.

Chemed shares had gained about 16% over the past year, outperforming the broader market but trailing the S&P 500 health care sector, which rose 23% over the same period. Shares were up more than 2% in premarket trading Wednesday.

Tanquilut said Chemed had fully worked through Medicare hospice cap issues that had constrained its client base and income potential in 2025. He also described the top line at Roto-Rooter, Chemed’s plumbing business, as stabilizing and said the business was moving past earlier challenges.

Tanquilut expects consolidated earnings to return to healthy, predictable growth as Chemed rebuilds a track record of earnings stability. He also expects the company to beat its fourth-quarter and full-year 2026 guidance. Three of the five analysts covering Chemed had buy or strong buy ratings, while the other two had hold ratings.