RE:Seeking Alpha - QIPT projected to triple in 3-5 yearsAn excerpt from Aaron Warwick's Seeking Alpha write up for those who did not read up ..haha
Looking out three years, it seems quite possible the company will be on a $200M revenue run rate, at minimum. They also are much more likely to be at the 25% margins by that time. This would lead to annual EBITDA of $50M, an EV of $600M, representing a share price of $19.20/share, and nearly a triple from current prices (195%+ return). Again, as I noted in the paragraph above, this estimate will need to be slightly adjusted depending on the cash used and/or debt taken on to make their acquisitions. Conclusion
While QIPT shares have recovered nicely since their recent acquisitions and earnings breathed life back into the stock, shares still have plenty of upside left based on my valuation model described above. With the company having brought on healthcare M&A veteran, David Chester, they will have a competent executive laser-focused on implementing their long-term accretive acquisition strategy for growth. As the company continues to grow and shows a willingness to take on moderate leverage for acquisitions, I believe the market will more fully appreciate their strategy and will re-value the company in-line with industry norms. If that happens, QIPT shares could quite conceivably triple within the next three years.