Bill Sutherland, an analyst from Benchmark Co., maintained the Buy rating on Quipt Home Medical (QIPT – Research Report). The associated price target was lowered to $4.00.
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Bill Sutherland has given his Buy rating due to a combination of factors that highlight Quipt Home Medical’s potential for future growth despite recent challenges. The company reported a miss in its F2Q revenue, primarily due to reduced patient referrals from Humana’s PPO plans and the impact of a terminated supply contract. However, Quipt managed to maintain a strong adjusted EBITDA margin of 23.3% through effective cost and process optimization, indicating good operating leverage that could benefit the company when revenue growth resumes.
Furthermore, management has observed more stable trends in equipment rental and resupply, suggesting a potential return to long-term growth targets by FY26. Additionally, Quipt is exploring growth initiatives like preferred provider agreements with regional health systems, which could enhance patient volume. Despite a lowered price target, the stock is trading at a discount compared to its peers, making it an attractive investment opportunity. The company’s resilience in maintaining demand for sleep therapy setups, unaffected by GLP-1 medications, also supports the Buy rating.