We’re still bullish on WELL Health, this analyst says

Ventum analyst Rob Goff maintained a bullish view on WELL Health Technologies (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL) in a May 11 report after first-quarter results came in ahead of his forecast and slightly above consensus.

The analyst maintained his “Buy” rating and one-year price target of $6.70 on WELL.

“We took a conservative view of the quarter and are encouraged by results ahead of our forecast and modestly above the consensus,” Goff said.

WELL reported Q1 revenue of $368.3-million, gross profit of $163.2-million and Adjusted EBITDA of $43.1-million, ahead of Goff’s estimates of $356.3-million, $150.0-million and $38.7-million. Consensus was $367.0-million, $159.5-million and $41.2-million.

Goff raised his 2026 revenue estimate to $1.564-billion from $1.547-billion and lifted his Adjusted EBITDA forecast slightly to $179.0-million, in line with the midpoint of management’s $175-million to $185-million guidance.

“We are encouraged by investments in strategic growth initiatives over the past quarter as public sector tailwinds and accelerating AI adoption converge to create a favourable environment for capturing outsized market share,” Goff said.

He pointed to federal interoperability requirements, Ontario’s $3.4-billion primary care plan, WELL’s Health Intelligence Platform and the company’s HEALWELL, WELLSTAR and CYBERWELL holdings as potential growth drivers.

Goff said WELL’s valuation could benefit from non-core asset divestitures, a potential WELLSTAR IPO and a revaluation of HEALWELL as revenue and cost synergies become clearer.

He expects WELL to generate Adjusted EBITDA of $197.0-million on revenue of $1.670-billion in fiscal 2027.

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

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