Healthpeak Properties Inc V.DOC

Primary Symbol: DOC

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT). The Company acquires, develops, owns, leases, and manages healthcare real estate across the United States. Its strategy is to invest in and manage real estate focused on healthcare discovery and delivery. It has a diversified portfolio of high-quality healthcare properties across three core asset classes of lab, outpatient medical, and continuing care retirement community (CCRC) real estate. The Company’s segments include Lab, Outpatient medical and CCRC. The lab segment properties contain laboratory and office space, are leased primarily to biotechnology, medical device and pharmaceutical companies, scientific research institutions, government agencies, and other organizations involved in the life science industry. The Outpatient Medical segment includes outpatient medical buildings and hospitals. Outpatient medical buildings typically contain physicians’ offices and examination rooms.

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Healthpeak Properties Inc > Beacon securities - raises PT to 2$

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Post by TheHunton Aug 06, 2020 10:01am

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Beacon securities - raises PT to 2$

CloudMD Software & Services Inc. (DOC-V)

12 Month Target: $2.00 (was $1.65) | S Buy (unch)

Gets Toehold Into Lucrative US Market

CloudMD announced that it has entered into a binding agreement to acquire 100% of a US-based (Mississippi) medical clinic serving chronic care patients.
This move is part of CloudMD's broader strategy for entering the US market with its comprehensive suite of telehealth products.
One of the key goals for CloudMD with this acquisition is to start providing a single comprehensive stop for longitudinal healthcare for chronic and complex care patients in the US.
In the US, 90% of the US$3.5 Trillion spent annually on healthcare is on chronic pain and mental health issues, so clearly this is a large market opportunity. We believe this was one of the main reasons driving Teladoc's (TDOC-Q, NR) US$18.5B acquisition of Livongo (LVGO-Q, NR), which was announced yesterday (representing over 50x CY20e sales).
This acquisition brings two key individuals, including Dr. Fred Roh and Curtis Gibson. Dr. Roh has over 30 years' experience in the US healthcare market having been founder of Healthcare Networks of America, LLC, which is a 15,000 member physician organization that provides service to 24M patients across the US. Meanwhile, Mr. Gibson has over 30 years' experience in investment banking and business development for medical clinics.
We believe CloudMD???s near-to-mid-term plan is to leverage Dr. Roh and Mr. Gibson's experience in building out a network of telehealth powered satellite clinics covering large areas of underserviced areas across the US (likely around southeastern US initially).
No financial details were provided, although we do not believe this was a material investment by CloudMD (relative to the potential growth opportunity). The transaction is expected to close on or before September 8th.
Aside from the close of the US clinic, over the next few weeks, we also expect the close of the previously announced acquisitions of an Ontario clinic, along with Snapclarity. We also expect news flow around CloudMD's current telemedicine product with Save-On-Foods and potential new deals via Snapclarity (including large insurers and employers) and other pharmacy groups for telehealth.
We are increasing our target to $2.00 (was $1.65), which is based on 7x CY21e EV/Sales (was 6x) due partially to an industry multiple expansion, along with the growth potential stemming from today's US expansion announcement. We reiterate our Speculative Buy rating.

View the full report (pdf): DOC-2020-08-06.pdf

Gabriel Leung | 416.507.3963 | gleung@beaconsecurities.ca

Beacon Securities
66 Wellington St W, Suite 4050, Toronto, ON M5K 1H1
www.beaconsecurities.ca
Copyright Beacon Securities Research 2018