BMO Capital Maintains Bullish 12%+ BrightSpring EBITDA Growth Outlook on Drug Contract Wins, Generic Conversions

Core Insights - BrightSpring Health Services Inc. (NASDAQ:BTSG) is recognized as a promising investment opportunity, with BMO Capital initiating coverage with an Outperform rating and a price target of $40 [1] - The company is projected to achieve over 12% EBITDA growth over the next three years, driven by securing additional limited distribution drug contracts and an increase in generic drug conversions [1] Financial Performance - In Q3 2025, BrightSpring Health reported total revenue of $3.3 billion, reflecting a 28% year-over-year increase [2] - Adjusted EBITDA for the same period grew by 37%, reaching $160 million, resulting in an EBITDA margin of 4.8%, which is an increase of 0.3% from the previous year and quarter [2] - The company has raised its full-year 2025 Adjusted EBITDA guidance to a range of $605 to $615 million, indicating a growth of 31.5% to 33.7% compared to full year 2024 [3] - Total revenue for 2025 is expected to be between $12.5 billion and $12.8 billion [3] Business Segments - BrightSpring Health operates as a home and community-based healthcare services platform in the US, with key segments including Pharmacy Solutions and Provider Services [3]