WELL Health Technologies has an “increasingly attractive growth profile”, Raymond James says

Following an update on its Canadian clinics business, Raymond James analyst Michael W. Freeman remains bullish on WELL Health Technologies (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL).

On July 8th, WELL announced that its Canadian clinics business was expanding rapidly, expected to post more than $450-million in revenue in 2025, which would be a 41% increase over 2024. The company also announced additional funding from RBC.

“Given that we are halfway through the year and tracking favourably to our plan for the year, we are very pleased to provide a progress update on our core Canadian clinics business,” CEO Hamed Shahbazi said. “Canadian clinics is demonstrating the strength of its platform with continued strong organic growth and M&A execution throughout 2025 so far with 13 clinics acquired to date, representing $33-million in annual revenue. Most recently, we’re pleased to announce two new strategic acquisitions completed just this past week. We are also pleased to report that we’ve recently amended our credit agreement to a $200-million senior secured facility led by RBC.”

Freeman says he is convinced that WELL’s plan is getting better and better.

“We think WELL carrying out its strategy to ultimately divest all US-based assets and redeploy proceeds toward its high-returning Canadian clinic opportunity is a wise one, and we view WELL’s progress working through its deep clinics pipeline positively,” he wrote. “We also see WELL’s recent news of capacity expansion across its Canadian clinic base through workflow streamlining and new physician recruitment (+45k new patient openings) as a strong leading indicator of organic growth, which, when coupled with its aggressive M&A plans, portend an increasingly attractive growth profile for the overall Canadian business. Our recent WELL clinic visits give us confidence that the company’s tech-driven clinic transformation/streamlining algorithm is robust, scalable, and a source of durable competitive advantage, further supporting our conviction in WELL’s core focus on the Canadian market. We await updates from WELL’s US asset divestment program to consider this strategy fully enacted (looking for movement, not sensational selling multiples), but appreciate the progress WELL is making with its current resources in the interim.”

In a research update to clients July 8th, Freeman maintained his “Outperform” rating and price target of $8.00 on WELL.

The analyst thinks the company will post Adjusted EPS of $0.28 on revenue of $1.41-billion in fiscal 2025. He expects Adjusted EPS of $0.23 on revenue of $1.53-billion in fiscal 2026.

Disclosure: Nick Waddell owns shares of WELL Health and the company is a sponsor of Cantech Letter.