RE:RE:Given Beacon's $9.50 target price $7.50 leaves 27% upsideFreelunch5 wrote: Too low. Should be $12.00. Cooper assumes 25% income taxes but VMD has $50 mil in tax credits....
digitel wrote: Doug Cooper of Beacon Securities, who on Tuesday reiterated his “Buy” recommendation with a target price raise from C$7.80 to C$9.50.
From Beacon Report "Close to expanding to 5 new States"
In terms of growth, we believe Q2 is reflective of the long-term growth cycle for VMD’s business, which is in the early innings.
Consider:
a) There are ~1.25 million Stage 4 COPD patients in the US that are candidates for NIV therapy. As a leading supplier (~10% market share) and with 5,078 patients, one can see the huge opportunity as physicians become more comfortable with the therapy.
b) Speaking of creating awareness, KPMG has completed its clinical study as commissioned by VMD. To date, the company has completed its internal training and will start to market the therapy’s efficacy (increased life expectancy, dramatically less hospital re-admissions) to physicians in the coming quarters. We believe this could, in fact, accelerate growth. c) In addition to marketing within its current 25 state footprint, VMD is close to expanding into 5 new states including Alabama, Colorado, Michigan, Florida and California. This will add a huge new population base and, in particular, ones with positive demographics as pertains to NIV (ie. Florida, Alabama).