WELL Health is a top pick for 2026, this analyst says

Paradigm Capital analyst Daniel Rosenberg said WELL Health Technologies (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL) is sharpening its strategic focus for 2026 and beyond, following the release of a shareholder letter from founder and CEO Hamed Shahbazi outlining the company’s priorities for the coming year and its longer-term growth ambitions.

Earlier this month, Rosenberg reiterated a “Buy” rating on WELL and maintained his $7.50 price target. The stock recently closed at $4.17, implying a market capitalization of roughly $1.06-billion.

In a Jan. 21 note, Rosenberg said the letter reinforces WELL’s strategy to accelerate growth in its Canadian clinic business, prioritize the spin-out of its WELLSTAR software division, and complete a strategic review of its U.S. assets.

WELL currently manages more than 230–240 clinics across Canada, representing about 1.0% to 1.5% market share, making it the country’s largest clinic operator. Management said its acquisition model typically targets clinics at mid-single-digit EBITDA multiples and that, on average, EBITDA at acquired clinics has doubled since acquisition.

The letter also highlighted WELL’s intention to advance the spin-out of WELLSTAR, its software business that supports roughly 40% of physicians in Canada through electronic medical records, billing, e-referral systems, and other digital tools.

In addition, WELL is reviewing its U.S. operations, which include Circle Medical, a telehealth platform; WISP, a women’s health network; and CRH Medical, a gastrointestinal care business that generates meaningful cash flow.

Rosenberg said potential divestitures could unlock value that would be redeployed into WELL’s core Canadian clinic platform.

Management noted that WELL is facing the largest M&A pipeline in its history, with more than 120 clinics representing approximately $370-million in revenue. Growth is expected to be funded through operating cash flow and potential monetization of strategic initiatives rather than equity issuance. Over the longer term, management outlined a goal to expand Canadian clinic market share from roughly 1.5% today to 10% over the next eight to ten years.

Rosenberg said WELL remains one of Paradigm’s top picks, arguing that the company’s self-funded acquisition model positions it to capture meaningful market share and create significant shareholder value through disciplined execution.

Nick Waddell owns shares of WELL Health and the company is an annual sponsor of Cantech Letter

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