Nutex Health initiated with a Buy at Maxim

Maxim initiated coverage of Nutex Health with a Buy rating and $45 price target. The company is focused on delivering accessible concierge-level healthcare to underserved patient populations through the management and expansion of its network of ER micro-hospitals, the analyst tells investors in a research note. The typical US hospital and ER system is understaffed and burdened with overwhelming patient demand, resulting in prolonged wait times and deteriorating patient experiences that could ultimately jeopardize patient safety and access to care, but the Nutex micro-hospitals are strategically located in high traffic suburban areas and maintain a full clinical staff 24/7 to support visibility, ease of access, and mitigate patient wait times, the firm states, adding that it expects the company to achieve a three-year compounded annual revenue growth rate of 16.6% for 2023-2026, with GAAP profitability coming in Q3 of this year.