Raymond James - cantechletter.com Following the company’s third quarter results, Raymond James analyst Rahul Sarugaser has trimmed his price target on Quipt Home Medical (Quipt Home Medical Stock Chart, News, Analysts, Financial TSXV:QIPT) but the analyst still thinks there is money to be made on the stock.
On August 14, QIPT reported its Q3, 2023 results. The compant posted Adjusted EBITDA of $13.9-million on revenue of $60.3-million, better than the same period in 2022, when it posted EBITDA of $7.7-million on a topline of $36.7-million.
The revenue figure was a 64 per cent beat over 2022’s Q3.
“We are thrilled to announce robust fiscal third quarter results, which display record sequential organic growth and additional margin acceleration, clearly illustrating that our business continues to fire on all cylinders. We are also thrilled to report that our key performance indicators have exceeded our baseline expectations and suggest strong and sustained momentum across the organization in real time. Our healthcare network’s key expansion across the United States has been driven by our continued penetration of key sales touchpoints, the successful integration and exceptional performance of our largest acquisition to date, and the strength of our core business. Our long-term growth strategy will continue to focus on driving organic volume growth, focused acquisition strategy that utilizes our proven integration process, and by leveraging upon our acquisition pipeline,” said CEO and Chairman Greg Crawford.
“Net net, this was a strong operational quarter for QIPT, now closing in on a ~US$250 mln annualized Rev. run-rate,” the analyst said. To this end, we expect QIPT’s now-sizable Rev., combined with its impressive patient base—QIPT is solidly the 5th largest respiratory care provider in the U.S.—will, increasingly, catch the attention of larger players in the space (Exhibit 1), potentially becoming a large enough thorn in their side during the next year or two to motivate action (acquisition/strategic partnership, etc.).
In a research update to clients August 16, Sarugaser chopped his price target on QIPT from $11.00 to $10.00, but maintained his “Outperform 2” rating on the stock. The analyst attributed the move to a “healthcare services sector derating”
Sarugaser now thinks QIPT will post EBITDA of $50-million on revenue of $221-million in fiscal 2023 and $64-million in EBITDA on a topline of $290-million the following year.