Quipt Home Medical, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Richard Close from Canaccord Genuity maintained a Hold rating on the stock and has a $1.70 price target.
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Richard Close has given his Hold rating due to a combination of factors related to Quipt Home Medical’s recent activities and strategic positioning. The acquisition of a durable medical equipment provider from Ballad Health is seen as a positive move, offering potential for growth through preferred provider agreements and patient referrals. However, while the acquisition is promising, Richard Close is cautious as he awaits a reacceleration of Quipt’s organic growth to its previously targeted levels of 8-10%.
Additionally, the lack of updates regarding the outstanding offer from Forager Capital Management to take Quipt private at $3.10 per share adds an element of uncertainty. This uncertainty, combined with the need to observe how the acquisition impacts Quipt’s financial performance, contributes to the decision to maintain a Hold rating. Overall, while there are positive developments, the analyst prefers to wait for more concrete signs of growth and clarity on the private offer before changing the rating.
According to TipRanks, Close is a 5-star analyst with an average return of 10.6% and a 49.90% success rate. Close covers the Healthcare sector, focusing on stocks such as Quipt Home Medical, HealthStream, and Phreesia.