Raymond James ups Quipt Home Medical PT after acquisition


Raymond James raised its price target for Quipt Home Medical (NASDAQ:QIPT; TSXV:QIPT) to $14 from $10, and reiterated its “outperform” rating after the company acquired Great Elm Healthcare for about $80-million. The stock closed at $4.77 on Jan. 3.

Quipt Home Medical, which provides in-home monitoring and disease management services, would add about $60-million of revenue and about $13-million in EBITDA across 70,000 patients, and 21 locations in the acquisition, writes analyst Rahul Sarugaser, Ph.D.

“With pro-forma annual revenue of about $220-million of revenue and EBITDA of about $50-million, we see Quipt Home Medical climbing the ranks of its peer set … such that we expect the company to begin seeing a right sizing of its asymmetrically undervalued multiple of five times 2023 EV/EBITDA upward toward its peer set’s average of about 12 times, representing a material near-term upside risk-reward profile for investors,” Dr. Sarugaser said.