All posts

HEALWELL AI is undervalued, Clarus says

Clarus Securities analyst George Ulybyshev likes what he sees from HEALWELL AI (HEALWELL AI Stock Quote, Chart, News, Analysts, Financials TSX:AIDX).

In a research update to clients February 27, the analyst launched coverage of AIDX with a “Speculative Buy” rating and price target of $1.50, implying a return of 69 per cent at the time of publication.

The analyst says the company is rolling out high-margin healthcare AI tech that is underpinned by effectiveness and trust.

“The Company’s AI technology has been validated and peer-reviewed through numerous real-world studies in both primary care and hospital settings. We believe this lends HEALWELL credibility within the medical community, which we see as a tremendous competitive advantage,” Ulybyshev said.

The analyst says the company’s unique relationship with healthcare giant WELL Health can unlock significant clinical and commercial value and notes that the former shares the latter’s commitment to grow through acquisition.

“WELL has made a significant commitment to HEALWELL, both financially and operationally, providing the Company access to a large network of patients, healthcare providers, and medical records. We believe this competitive edge will enable HEALWELL to effectively scale its AI technology into a multinational footprint,” he added.

Ulybyshev thinks AIDX will post Adjusted EBITDA of negative $13.5-million on revenue of $20.8-million in fiscal 2024. He expects those numbers will improve to Adjusted EBITDA of negative $9.1-million on a topline of $31.7-million in fiscal 2025.

“Our 12-month target price equates to a blended valuation multiple of 11x 2025e EV/Sales,” he wrote. “Our target valuation multiple takes into account the Company’s competitive positioning, its margin profile, and the growth opportunities that stem from the disruptive nature of the industry in which it operates.”

Disclosure: AIDX and WELL are clients of Cantech Letter and Nick Waddell owns shares of both companies.

We Hate Paywalls Too!

At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.

Make a one-time or recurring donation

Tagged with: aidx
Nick Waddell

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

Recent Posts

CSU is still undervalued, RBC says

Its first quarter results are due soon, and RBC analyst Paul Treiber thinks Constellation Software (Constellation Software Stock Quote, Chart,… [Read More]

52 mins ago

Is Shopify stock a buy? (April 2024)

Ahead of the company's first quarter results, RBC analyst Paul Treiber remains bullish on Shopify (Shopify Stock Quote, Chart, News,… [Read More]

1 hour ago

Celestica wins price target raise at RBC

Ahead of the company's first quarter results, RBC analyst Paul Treiber has raised his price target on Celestica (Celestica Stock… [Read More]

2 hours ago

Buy TMG stock ahead of Q3 results, Beacon says

Ahead of the company's third quarter results, due April 25 Beacon analyst Russell Stanley has reiterated his "Buy" recommendation on… [Read More]

3 days ago

Copperleaf Technologies is undervalued, BMO says

Its stock has done well this year, but BMO analyst Thanos Moschopoulos thinks there is still money to be made… [Read More]

3 days ago

PI cuts price target on TSXV:TINY

PI Financial analyst Jason Zandberg is still bullish on TINY (TINY Stock Quote, Chart, News, Analysts, Financials TSXV:TINY), just a… [Read More]

4 days ago