Long Term Investment Q: They're are 7 analysts following this stock with an average of 12.45 12 months out. Does it have any chance of doing this?
We would take 12-month price targets with a grain of salt as we find they are often anchored to the price at the time of reporting. With a higher risk name, it is quite normal for there to be discrepancies between current prices and targets. WELL shares have also shown weakness over the past few months so it is also difficult for price targets to be adjusted given the volatility. The business has grown significantly in 2021 with revenues up 490%. Shares certainly looks more attractive at 3.5x sales and 16.9x EV/EBITDA. We think WELL could be a $15 stock in 3-5 years, but we think it is less likely to break past previous highs in the short-term given the general shift away from 'COVID stocks'. We think the long game needs to be played with this one.
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