WELL Health Technologies Corp T.WELL

Desjardins

[retiredcf]

In response to Monday’s announcement of the $19.25-million acquisition of New Zealand’s Intrahealth Systems Ltd., Desjardins Securities analyst David Newman raised his rating for WELL Health Technologies Corp. to “buy” from “hold,” seeing the deal as “a retracing back to WELL’s core advantage as a hybrid healthcare provider.”

“The valuation is attractive when compared with WELL’s past EMR [electronic medical records] deals (3.5–4.0 times revenue), especially with Intrahealth being its 10th and largest EMR acquisition to date,” he said.

Mr. Newman pointed to a trio of benefits from the deal: an expansion of its EMR addressable market and “firmly positioning it as an international operator with a multi-product business;” the ability to market Intrahealth’s Profile EMR product alongside its own OSCAR offering; and the benefit integrating Intrahealth to the apps.health marketplace, “paving the way for third-party developers to have the digital health apps available for both OSCAR Pro and Intrahealth.”

The analyst maintained a $10.50 target for the Vancouver-based company’s shares. The average on the Street is $11.53.

“We are upgrading ... given the United Digestive resign by CRH, stronger digital health SaaS revenue with high-margin recurring revenue, Intrahealth’s attractive valuation and a potential U.S. listing,” Mr. Newman said.

[speedy99]

Excellent summary of recent developments.  I especially like the reference to "“firmly positioning it as an international operator with a multi-product business;”  If the market is not yet convinced that we are making gigantic steps forward, the future earnings will soon become clear.  It is doubtful that earnings will ever be similar to what was being generated when we were a

[jabez3]

And CRH reports tomorrow after bell

[thinkyourmoney]

From what I understand from reading up on the acquisition of CRH is that it was bought not just as a medical addition but more because it is a cash cow.  With lots of cash coming in WELL will not need to finance M&A but it will be done with the FCF created from the solid business of CRU. What should become clear is whether WELL bought a regular cash cow or a blue ribbon cash cow. 

[Aarman4]

You are so correct thinkyourmoney, acquiring a major source of free cash flow cannot be understated here. First of all, WELL is a health technology company with an M&A strategy. That M&A strategy needs cash to execute, and the more cash flow coming in, the less dilutive to us shareholders the acquisition process becomes. Second of all, this goes a long way to pushing WELL towards showing

[monty613]

you nailed it. i am a long time CRH Medical shareholder who got into the stock knowing it would eventually get taken over or taken private. i transitioned everything into WELL as i truly believe the CRH business has a long runway for growth in its own right. and all the better now that it will trade under WELL's metrics. i personally don't think the cross selling/synergies as a big as