upgrades galore With its shares down 32 per cent from 2021 highs and seeing its third-quarter results “displaying positive underlying trends,” Scotia Capital analyst Adam Buckham raised his rating for WELL Health Technologies Corp. (
) to “sector outperform” from “sector perform.”
“WELL reported Q3 results [Wednesday] morning, which for the most part, beat ours and Street estimates across the board, with revenue and Adj. EBITDA coming in at $99-million and $22-milion (vs. the Street at $92-million and $19-million),” he said. “However, what was important to us, were several underlying trends which we believe point to a positive outlook. These include: (1) solid organic growth of 14 per cent year-over-year, (2) robust expansion of U.S. telehealth (approaching US$57-million in run-rate revenues), and (3) solid visibility to $500-million in annualized revenues in 2022. On the back of these positives, along with recent share performance, we are taking the opportunity to upgrade.”
His target for target for shares of the Vancouver-based digital health technology company slid by $1 to $9. The average is currently $11.73.
“We see the current valuation as an attractive entry point,” he said.
Elsewhere, CIBC’s Scott Fletcher increased his target to $11 from $10.50, keeping an “outperformer” rating.
“WELL reported a solid quarter with revenue 6.5 per cent ahead of consensus estimates and adjusted EBITDA 11.5 per cent ahead of expectations. The strength was driven by WELL’s virtual services business, where patient enablement and telehealth offerings continue to see solid growth. WELL’s businesses saw 14-per-cent organic growth over the last year, as the mix of omni-channel patient care and virtual services delivered growth in an uncertain environment,” he said.
Well Health Technologies Corp
6.87-1.18 (-14.66%)
Year to date
March 17, 2021
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