Omada Health initiated with a Buy at Canaccord

Canaccord analyst Richard Close initiated coverage of Omada Health (OMDA) with a Buy rating and $27 price target The firm views Omada’s AI virtual care platform that drives engagement and outcomes between doctor’s visits as differentiated in a competitive chronic-care market. Having seen Omada’s business evolve over the last six years, they are impressed with the improved financial profile that it has achieved. This is especially true with respect to gross margins but its focus on validated outcomes, including 29 peer-reviewed studies, differentiates its programs versus competitors in the core cardiometabolic area. Omada is building strong channel partnerships that provide it a competitive advantage as employers evaluate their go-forward strategy to mitigate rising medical cost trends for select chronic diseases, including obesity exacerbated by the emergence of GLP-1 drug utilization.