In a separate note, Ms. Stellick cut her target for shares of Quipt Home Medical Corp. (
) to $13.25 from $13.40 with a “buy” rating following the acquisition of a strategic location in Central Illinois.
“QIPT continues to expand through M&A to build out a national DME platform, completing six acquisitions totalling more than $16-million in revenues since July,” she said. “The acquisition announced [Tuesday] expands the Company’s footprint within Illinois, a market with higher-than-average COPD prevalence in the U.S.. With $30-million cash on hand, access to
$20-million of credit, and an active pipeline, we expect more strategic M&A in the next six months. These results confirm that QIPT continues to successfully execute on its growth strategy and benefit from increased scale through operational leverage.”