Haywood analyst Gianluca Tucci maintained a Buy rating on HEALWELL AI yesterday and set a price target of C$4.50.
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Gianluca Tucci’s rating is based on the significant transformation HEALWELL AI has undergone, resulting in a streamlined and focused business model. The company has divested its non-core assets, including physical clinics and a small-to-medium business AI tool, which has allowed it to shed its complex conglomerate structure. This strategic move has positioned HEALWELL AI as a pure-play enterprise AI and SaaS company with a robust $120 million revenue run-rate, already profitable on an Adjusted EBITDA basis.
With these changes, HEALWELL AI is now a high-growth, high-margin enterprise software company, which warrants a valuation reflective of its new streamlined operations. The market can no longer apply a blended, discounted multiple to its valuation, making the investment thesis straightforward and compelling. These factors collectively underpin Gianluca Tucci’s Buy rating for HEALWELL AI’s stock.
In another report released on October 21, Stifel Nicolaus also maintained a Buy rating on the stock with a C$3.80 price target.