Quipt Home Medical: Hold Rating Amid Growth Challenges and Sector Headwinds

Analyst Richard Close of Canaccord Genuity maintained a Hold rating on Quipt Home Medical (QIPT – Research Report), retaining the price target of $1.70.

Richard Close has given his Hold rating due to a combination of factors impacting Quipt Home Medical. The company has been facing persistent challenges in achieving its organic growth targets, which have been further complicated by a transition to US GAAP accounting. These issues have contributed to a lack of clear catalysts for significant stock price appreciation in the near term.
Additionally, the healthcare sector as a whole has been experiencing negative investor sentiment, influenced by rising medical costs, inflation, and supply chain issues. Quipt’s smaller scale and liquidity profile add to the difficulty of attracting new investor interest. The recent non-binding offer from Forager Capital Management to take the company private is seen as a potentially favorable outcome for shareholders, allowing Quipt to address its challenges away from the pressures of the public market.

QIPT’s price has also changed moderately for the past six months – from C$3.370 to C$3.000, which is a -10.98% drop .