William Blair launched coverage of Augmedix (NASDAQ:AUGX) with an “outperform” rating. The stock closed at $3.63 on Oct. 29.
Augmedix provides a virtual medical documentation and live clinical support service, which allows clinicians to focus on patient care over administrative tasks and manual data entry.
Analyst Ryan Daniels writes that he is projecting revenue for Augmedix of $21.6-million for 2021, climbing to $28.7-million for 2022.
Mr. Daniels said Augmedix shares trade at about 3.3 times estimated revenue in 2022. “While this represents a discount to a diversified group of health care IT peers, we believe this discount is unwarranted, given the company’s strong organic growth outlook and impressive customer lifetime-value-to-customer-acquisition-cost metric,” he added.
