CanaccordCIBC World Markets’ Scott Fletcher raised his
Well Health Technologies Corp. (
) target to $7 from $6.50 with an “outperformer” rating, while Canaccord Genuity’s Doug Tyaylor increased his target to $6.50 from $6 with a “buy” rating. The average is $7.92.
“Following WELL’s stronger-than-anticipated Q4 results and outlook, shares traded up 8 per cent Tuesday,” said Mr. Taylor. “The message was that the company would continue to reinvest in high-growth platforms including Circle and WISP, expected to contribute to an overall 17-20-per-cent top-line growth rate in 2023. This means more metered EBITDA expansion, seen up 10 per cent plus year-over-year, given increased investment. We continue to rate WELL a BUY and have increased our target ... we believe the company’s premium valuation on EBITDA is increasingly justified by its record of execution against expectations, its M&A optionality, and that its high-growth assets don’t yet fully contribute mature EBITDA margins.”