Jefferies upgrades Chemed to Buy and lifts price target to $620

Jefferies raised its rating on Chemed Corp. (CHE) from Hold to Buy and increased the price target from $520 to $620, citing strong recent hospice growth and improving margins. The upgrade follows Chemed's Q2 adjusted earnings per share of $6.06 and revenue of $673.25 million, which beat analyst forecasts. Jefferies expects the company to beat guidance for Q4 and FY 2026 as earnings stability returns. UBS also initiated coverage with a Buy rating and a $650 target, projecting low double‑digit adjusted EPS growth.

Jefferies' note suggests roughly 22% upside from the current price, which could attract buying interest. UBS's higher target and growth outlook reinforce expectations of earnings expansion, potentially supporting the stock’s valuation.

  • 1Jefferies upgraded Chemed from Hold to Buy and raised its price target to $620 from $520.
  • 2Chemed reported adjusted earnings per share of $6.06 for the second quarter.
  • 3Chemed reported second‑quarter revenue of $673.25 million.
  • 4Jefferies expects Chemed to beat guidance for Q4 and fiscal year 2026.
  • 5UBS initiated coverage with a Buy rating and a price target of $650.
  • 6UBS projects low double‑digit adjusted EPS growth of 19% in 2026 and 10% in 2027 and 2028.

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