WELL Health Technologies named “Best Idea” at TD Cowen

TD Cowen analyst David Kwan maintained a “Buy” rating and C$7.50 target price on WELL Health Technologies  (WELL Health Stock Quote, Chart, News, Analysts, Financials TSX:WELL) in the firm’s Canada Best Ideas 2025 report, calling the recent pullback in shares a buying opportunity given the company’s robust pipeline of catalysts.

“Our C$7.50/share target is based on a sum-of-the-parts valuation and implies ~12.4x our 2026 adjusted EBITDA, which is below the peer group average at ~17.2x,” Kwan said. “Consensus expectations for this year appear low to us, which could lead to upward revisions ahead given WELL’s strong track record of execution.”

Shares of the Vancouver-based multichannel digital health company are down about 7% since its second-quarter beat-and-raise. Kwan said WELL has “rebuilt investor confidence” after disclosure of issues at Circle Medical earlier this year, delivering two consecutive quarterly beats with its Canadian operations showing strong organic growth and margin expansion.

Kwan pointed to several near-term catalysts, including the planned sale of U.S. assets Wisp, Circle and CRH, which he said would help simplify the story, enable debt repayment and buybacks, and concentrate investor attention on the company’s Canadian platform. The analyst also highlighted the potential spin-out or IPO of WELLSTAR, its “Rule of 40” software business, as another driver of shareholder value.

“We think WELL remains in a prime position to extend its leadership in the highly fragmented Canadian clinic market, where it estimates its market share at 1.6% versus less than 1% a year ago,” Kwan said. “Its highly accretive and capital efficient clinic roll-up strategy should remain a key element of growth.”

TD Cowen estimates WELL will generate Adjusted EBITDA of C$200.4-million on sales of C$1.42-billion in 2025, rising to C$207.4-million on C$1.58-billion in 2026.

Kwan added that M&A remains a strong growth lever, with more than 15 signed letters of intent across WELL’s divisions representing C$134-million in revenue. The total pipeline spans about C$440-million in revenue potential and more than 110 clinics.

“WELL’s Canadian Patient Services division is positioned to benefit from strong reimbursement rate trends in primary care and increased investments to reduce wait times,” he said. “We continue to view WELL as one of the most compelling asymmetric setups in Canadian healthcare tech today.”

TD Cowen’s Canada Best Ideas 2025 highlights the firm’s highest-conviction picks across its Canadian coverage universe. Its research platform spans nearly 1,300 companies across the U.S., Canada and Europe, with over 80 analysts publishing coverage.

Disclosure: Nick Waddell owns shares of WELL Health and the company is an annual sponsor of Cantech Letter. WELL Health will attend the 2025 Cantech Investment Conference on October 9th in Toronto. For more info on the conference click here.

-30-