NEW YORK (TheStreet) -- Shares of BioScrip(BIOS) - Get Report were gaining 7.8% to $5.14 on heavy trading volume on Thursday after analyst firm Craig Hallum initiated coverage of the home health care company.

Craig Hallum started coverage of BioScrip with a "buy" rating and a price target of $7. The analyst firm said shares of the company are "significantly undervalued" and are poised for substantial cash flow and profit improvement driven by home infusion demand.

BioScrip offers infusion and home care management solutions and partners with physicians, hospital systems, nursing facilities, healthcare payors, and pharmaceutical manufacturers to provide patients access to post-acute care services. The company is based in Elmsford, NY.

About 2.2 million shares of BioScrip were traded by 10:52 a.m. Thursday following the new rating, above the company's average trading volume of about 1.4 million shares a day.

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