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Quipt Home Medical’s Strategic Acquisitions and Strong Financial Performance Justify Buy Rating

Quipt Home Medical’s Strategic Acquisitions and Strong Financial Performance Justify Buy Rating

Benchmark Co. analyst Bill Sutherland has reiterated their bullish stance on QIPT stock, giving a Buy rating on August 12.

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Bill Sutherland has given his Buy rating due to a combination of factors including Quipt Home Medical’s strategic acquisitions and strong financial performance. The company has returned to organic revenue growth and has announced significant acquisitions, such as a 60% stake in a $60 million DME provider in a joint venture with three healthcare systems. These acquisitions not only demonstrate management’s confidence in the business outlook but also bring a stable patient referral base from regional health systems, reducing risk.
Additionally, Quipt’s history of successful acquisition integrations supports a positive future outlook, with updated models indicating conservative revenue and AEBITDA growth projections. The company’s liquidity and leverage are well-positioned to support these acquisitions, and the valuation reflects a competitive EV/AEBITDA multiple. These factors collectively underpin the Buy rating and a price target of $4.

In another report released on August 12, Stifel Nicolaus also maintained a Buy rating on the stock with a C$6.70 price target.

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