Canaccord Genuity analyst Richard Close maintained a Buy rating on Omada Health, Inc. yesterday and set a price target of $27.00.
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Richard Close’s rating is based on Omada Health’s strong potential for growth and strategic partnerships that enhance its market position. Despite initial post-IPO challenges, Omada’s clinical effectiveness and demand for its programs, particularly those related to GLP-1 drugs, provide a solid foundation for future success. The company’s partnerships with Cigna’s Evernorth and CVS Caremark are expected to drive client acquisition and operational efficiency, supporting revenue growth and eventual profitability.
Close anticipates that Omada’s revenue growth momentum will continue, with expectations of achieving adjusted EBITDA profitability by FY’27. The company’s ability to leverage AI and efficiency tools is projected to improve care team efficiency, contributing to gross profit margin expansion. Additionally, the rising prevalence of youth prediabetes suggests a stable target market for Omada’s offerings, further supporting the Buy rating as the company is well-positioned to capitalize on these opportunities.
In another report released on July 14, Morgan Stanley also reiterated a Buy rating on the stock with a $25.00 price target.