Analyst Allen Klee from Maxim Group reiterated a Buy rating on Hydreight Technologies Inc and keeping the price target at C$8.50.
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Allen Klee has given his Buy rating due to a combination of factors that highlight Hydreight Technologies Inc’s potential for significant growth. Despite a temporary setback in the third quarter of 2025 due to timing issues in revenue recognition, the company has demonstrated strong year-over-year revenue growth and an increase in adjusted EBITDA. The launch of their Direct-to-Consumer platform is expected to be a major growth driver, complemented by the expansion of their nurse network and pharmaceutical sales.
Furthermore, the recent acquisition of a stake in Perfect Scripts is anticipated to enhance their pharmaceutical distribution capabilities at reduced costs. Hydreight’s financial position, with sufficient cash reserves and manageable debt, supports their organic growth strategy. The company’s scalable platforms and strategic partnerships create a competitive advantage, and the current stock price decline is seen as an overreaction, presenting a compelling buying opportunity. Klee’s confidence is bolstered by management’s guidance on increasing average order values and the expectation of robust revenue and EBITDA growth through 2027.