Lake Street Capital: Buy Viemed (VMD), Price Target: US$15. Contact them to confirm:
https://www.lakestreetcapitalmarkets.com/
Breathing A Bit Easier Following Solid Q3; Affirm Buy Rating And $15 PT
Most health service providers have seen a massive disruption in their business over the past 18 months as a result of COVID-19. While this is certainly true of Viemed, we believe this management team and organization has responded to the pandemic as the true entrepreneurs they are.
As a result, the Company is emerging stronger and with a broader and more diverse growth opportunity than existed before this national (global) debacle occurred.
Revenue in the Company’s core non-invasive respiratory business grew 12% YoY and 6% sequentially this quarter. We are excited about VMD’s expanding focus on home oxygen, which grew 16% sequentially, and about the launch of a health care staffing business as well.
Last, VMD continues to make strides to expand its remote patient monitoring capability and is poised to become a leader in technology enabled home healthcare.
Overall, VMD is performing well now and is poised to accelerate growth as the markets return to normal and these initiatives begin to mature.
We are increasing our forecast as highlighted in the table at right.
We affirm our Buy rating and $15 PT.