InfuSystem Holdings (INFU) Receives Buy Rating – Analyst See’s Margin Expansion

InfuSystem Holdings (NYSEAMERICAN: INFU) has received a new “Buy” rating from Roth Capital, coupled with a compelling narrative of operational efficiency and scalability, that is turning heads on Wall Street.

Analyst Kyle Bauser's initiation of coverage with a $12 price target, more than double the current price, suggests a significant upside potential that has the stock moving up today. INFU is trading 3.8% up, whilst the S&P 500 trades down 0.1$ on the day.

Roth Capital's bullish stance is rooted in InfuSystem's unique business model. The company operates through two key segments: Patient Services and Device Solutions.

The magic, according to Bauser, lies in InfuSystem's ability to automate critical processes such as billing, patient record management, and pump tracking. This automation allows the company to efficiently serve a growing customer base without the need for a linear increase in headcount, a key driver of margin expansion.

This perspective resonates with the broader analyst community, with a consensus 12-month price target of $13.00, even higher than Roth Capital's target.

This consensus suggests a strong belief in InfuSystem's underlying value and its potential to rebound.

Recent financial results further support the bullish case. In the first quarter of 2025, InfuSystem reported a 9% increase in net revenues, reaching $34.7 million.

The Patient Services segment led the charge with a 12% revenue increase, while the Device Solutions segment grew by 4%.

More impressively, adjusted EBITDA soared by 64% year-over-year to $6.3 million, with the adjusted EBITDA margin expanding by 6.2% to 18.2%.