WELL Health will benefit from increased Ontario healthcare spending, analyst says

In a March 26 report, Stifel analyst Justin Keywood reiterated his “Buy” rating and C$8.00 target on WELL Health Technologies (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL), saying Ontario’s 2026 budget meaningfully increases funding for primary care and could support stronger clinic utilization and economics.

Keywood noted the province announced $325-million in new healthcare investment, bringing total primary care funding to $3.4-billion, with a goal of connecting two million unattached patients by 2029. He said the pace of spending implies a 155% jump to $604-million in 2026-27 and roughly $1.0-billion by 2028, creating a favourable backdrop for WELL, which he described as the market-share leader in primary and specialty care.

The analyst said WELL is positioned to benefit because its clinic network has available physical capacity, at roughly 60% utilization, even as patient demand continues to outpace physician supply. In his view, additional doctors supported by new funding could improve throughput and clinic-level economics.

Keywood also addressed investor concern around Ontario’s separate electronic medical records consolidation initiative, which pressured WELL shares by about 10% last Friday. He said that the reaction was misplaced, noting that WELLSTAR holds about 18% share in the EMR market but represents only about 1% of WELL’s total revenue. He argued WELL and WELLSTAR are more likely to be partners in the province’s “market sounding” process than losers from consolidation, and said the initiative could ultimately expand the addressable market.

He added that WELL continues to trade at about 1.0x sales, below peers at roughly 1.6x, and said the recent pullback left the stock more attractive.

Keywood said his investment thesis rests on four main pillars: further clinic scale through acquisitions and builds, more technology asset purchases that deepen SaaS exposure and improve the platform mix, continued development and testing of new tools across WELL’s one million-plus annualized patient visit run rate, and broader organic expansion across Canada and the United States.

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

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