Reason why Beacon increased price target to $17Because they know how serious Viemed is about acquisitions in 2021. And the motivation behind that acquisition is also sound; to gain a foothold in NEW states by buying an existing, quality company.
Viemed operates in 38 states right now. But some big states, they don't have much sales in.
Viemed management still has a LOT of organic growth opportunities in the states that they are already in, but they think that an acquisition would be the better choice for states they aren't in. Ideally, they would like big enough acquisition(s) that they could add 6 or 7 states to their current total of 38 in 2021.
source: Doug Cooper of Beacon asked this question at the conference call.
https://seekingalpha.com/article/4411209-viemed-healthcare-inc-vmd-ceo-casey-hoyt-on-q4-2020-results-earnings-call-transcript