BTSGSold some today but looks great l/t 

BTSG received several questions about its relatively smaller infusion business and broader biosimilar risk on its earnings and follow up calls the next day. Importantly, infusion is a small portion of BTSG's book (exact revenue is undisclosed, grouped with Specialty Pharmacy), though a segment that BTSG has recently touted for its high growth profile, noting +DD% growth in acute and in chronic in 1Q. However, the current portfolio is skewed more towards acute, and BTSG is focused on growing more in infusible drugs on the chronic side than it is injectable or subq, and has little IG therapy. Given its size and exposure, it seems less likely that BTSG would end up in a situation similar to OPCH, and it will likely be mindful of potential drug exposure as it expands its business.

We revise our BTSG estimates on incremental confidence in near term and longer term growth prospects, where we are now forecasting $810M EBITDA in '26 (from $778M prior) and $930M in '27 (from $897M prior). We are raising our PT to $62, from $48, derived from 16.5x '27 EBITDA, from 13.5x prior. Our new multiple is ~3.9x premium to the home health peer group, from ~0.7x prior, which we view as warranted as BTSG continues to solidify itself as a leader in the Specialty Pharmacy arena that can deliver consistent growth in a league above peers. Its recent Investor Day target for 15-20% organic EBITDA growth from '26-'28 was impressive and the recent momentum helps to instill further confidence in the growth profile. BTSG already addressed that the outperforming Pharmacy Solutions segment could see growth moderate (i.e. in the teens/20%s vs. 40%+ of late) but Infusion, Home & Community and Provider Services will continue to meet the LT range. M&A can also provide ample upside, with at least $2B in incremental capital availability through 2028, which could add 2-3% to EBITDA growth annually (MSe). Thus, we believe BTSG has ample runway for multiple expansion as its story becomes increasingly clear and compelling. Reiterate OW.