Richard Close, an analyst from Canaccord Genuity, maintained the Hold rating on Quipt Home Medical. The associated price target is $3.65.
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Richard Close has given his Hold rating due to a combination of factors surrounding Quipt Home Medical. One major consideration is the recent take-private transaction announced at $3.65 per share, which is assessed as a fair valuation for shareholders given Quipt’s financial performance and market positioning. With an earlier bid from Forager Capital Management at $3.10 earlier this year already rebuffed, Richard Close views the current bid positively, although he does not anticipate a higher offer materializing, citing lack of near-term catalysts and uncertain regulatory conditions affecting the healthcare sector.
Furthermore, while Quipt’s 4QFY’25 results exceeded revenue and adjusted EBITDA expectations, showcasing double-digit growth rates, the valuation implied in the transaction is comparable to its publicly traded peers like AdaptHealth. This relative valuation aligns with market conditions and reflects limited potential for significant price appreciation. Overall, these factors shaped the Hold rating for the stock to highlight balanced risk and reward considerations for investors.