CareRx wins price target raise at Desjardins

Following the company’s fourth quarter results, Desjardins analyst Gary Ho has raised his price target on CareRx Corp (CareRx Stock Quote, Chart, News, Analysts, Financials TSX:CRRX).

On March 5, CRRX reported its Q4 and fiscal 2024 results. In the fourth quarter, the company posted Adjusted EBITDA of $7.6-million on revenue of $92.2-million, up from $91.1-millionin the fourth quarter of fiscal 2023.

“Throughout 2024, CareRx has continued to strengthen its financial and operational performance, positioning itself for the growth opportunities in the coming year,” CEO Puneet Khanna said. “Our investments in operational efficiency and automation have enhanced our ability to scale without a proportional increase in costs, contributing to a stronger balance sheet. This solid foundation enables us to pursue strategic opportunities while maintaining a disciplined approach to capital allocation. As we enter the next phase of growth, we remain committed to enhancing our service offerings for home operator partners and residents while delivering long-term value to our shareholders.”

As reported by the Globe and Mail, Ho March 6 maintained his “Buy” rating and raised his price target on CRRX from $3.75 to $4.00.

“We are more positive in relation to the 4Q miss following management’s clarification on higher ‘other’ operating expenses, which are mostly one-time in nature (related to the North Burnaby ramp),” the analyst wrote. “Excluding this, 4Q might have been a beat vs our estimates and consensus. Management appears confident in the bed growth pipeline for 2025, including 3,000 beds for 1H, and a 10-per-cent EBITDA margin target by mid-year. We increased our estimates slightly and like management’s continued active buybacks.”