CIBCAugust 15, 2021 Initiating Coverage
DIALOGUE HEALTH TECHNOLOGIES, INC.
Initiating Coverage: CAREfully Optimistic
Our Conclusion
We hold a positive view on Dialogue Health’s strong product offering and strategic approach, with a belief that virtual primary care and mental health services have now been well established as a lasting employee benefit. We also believe that the virtual health and wellness space has become increasingly crowded, with a number of start-ups and established players competing for the same market share. Further, with the COVID-19 pandemic ongoing, the growth potential of virtual health and wellness benefits remains somewhat uncertain, especially as the severity of the pandemic appears to be easing. Dialogue will need to continue executing on the opportunity in front of it by expanding breadth of service and delivering on the land-and-expand approach. As of August 15, we initiate coverage on DialogueHealth with an Outperformer rating and a $13 price target based on 7x EV/2022E sales as we view current valuation levels as an attractive entry point.