Analyst Richard Close of Canaccord Genuity maintained a Buy rating on Quipt Home Medical (QIPT – Research Report), retaining the price target of $4.00.
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Richard Close’s rating is based on a combination of factors that highlight both the challenges and potential opportunities for Quipt Home Medical. Despite missing revenue and EBITDA expectations for the second quarter of fiscal year 2025, the company is actively working to address these issues by expanding its referral networks and improving operational efficiency. Quipt is also focusing on becoming more integrated with hospital and health systems, which could enhance its organic growth prospects.
Furthermore, the company’s financial position remains relatively strong with $17.1 million in cash and total credit availability of $30.7 million, alongside a manageable net leverage of 1.5x. While immediate catalysts for stock movement are limited, the company’s stable margins amidst revenue challenges and potential M&A opportunities with health systems provide a foundation for future growth. Richard Close’s Buy rating reflects confidence in Quipt’s strategic initiatives and financial resilience, despite current market headwinds.
QIPT’s price has also changed moderately for the past six months – from C$3.770 to C$2.980, which is a -20.95% drop .