This Canadian healthcare stock is undervalued, analyst says

Beacon Securities analyst Gabriel Leung initiated coverage of Hydreight Technologies on Oct. 20 with a “Speculative Buy” rating and an $8.50 target price, based on 25× CY27e EV/EBITDA, citing accelerating growth across its digital healthcare network and strong traction in its new direct-to-consumer platform.

“Nevada, Las Vegas-based Hydreight is a digital healthcare technology company with the goal of building the largest, ‘compliance-first’ mobile clinic network in the US,” Leung said. The firm operates a legal and technology framework that allows healthcare providers, including registered nurses and wellness clinics, to offer at-home care in all 50 states. Its ecosystem includes a pharmacy network and nationwide physician group that together form what Leung described as an “important competitive moat enabling operations in all 50 states.”

Hydreight currently generates revenue from three main business segments: its nurse network, a franchise white-label program, and the VSDHOne direct-to-consumer platform. The first two segments have expanded revenue from about $1.2-million in 2021 to an annualized $21.5-million based on Q2 2025 results, while the company has maintained profitability since Q4 2024.

Leung called VSDHOne the company’s “valuation sizzle,” given its rapid growth and scalability. Pharmacy order volume on the platform climbed from about 7,000 in June 2025 to more than 80,000 by August.

“We expect volumes to continue to increase month-over-month and for the company to hit a CY25e exit run-rate of ~1.5M orders,” he said.

Leung added that Hydreight’s pending 5% equity investment in Perfect Scripts LLC, a deal expected to accelerate prescription fulfillment, could also enhance margins and drive additional revenue through VSDHOne.

“In time, we expect VSDHOne to act as a key distribution channel for other medical services beyond Perfect Script’s current offerings, which could further propel growth,” he said.

He noted that Hydreight has delivered several milestones in recent months, including its binding definitive agreement with Texas-based Perfect Scripts, an update showing it had already surpassed its internal pharmacy order targets, and Q2 2025 results featuring revenue of $5.4-million (up 31% year-over-year) and positive EBITDA of $182,000. The company ended the quarter with $6.1-million in cash and $750,000 in debt. After a $11.5-million convertible financing, Beacon estimates pro-forma cash of $18.4-million and debt of $12.2-million.

Leung also highlighted Hydreight’s binding LOI with Auxano One LLC, a Pennsylvania-based partner with which a definitive agreement is expected by Nov. 4. He said the company continues to diversify its service base, noting that August order volume exceeded 80,000, reflecting “broad demand across multiple service lines, many of which are among the fastest-growing segments of the U.S. healthcare market.”

Leung said Hydreight should generate $2.5-million in Adjusted EBITDA on $43.4-million of revenue in fiscal 2025, improving to $9.1-million on $100.8-million in fiscal 2026.

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