Well Health Technologies is worth $8.25 a share, this analyst says

Stifel analyst Justin Keywood says the resolution of a billing investigation at WELL Health Technologies’ (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL) majority-owned Circle Medical subsidiary could clear the way for a potential sale of the asset.

In a June 12 report, Keywood maintained his “Buy” rating and $8.25 target on WELL.

WELL said Circle Medical resolved a previously disclosed matter with the Civil Division of the U.S. Attorney’s Office for the Northern District of California related to historical billing and supervision practices. The matter was settled for US$3.3-million, with no admission of wrongdoing.

“We also believe that any one divestiture will serve as a catalyst with a demonstration to the market of the business model refinement and pure-play consolidation pursuits…”

Circle Medical is a tech-enabled primary-care platform that provides virtual care across the United States, with in-person care at 27 locations. WELL said the business now provides care across 32 states through a platform connected to 99 payers and about 14,000 health plans.

Keywood estimates Circle could generate $30-million to $45-million in proceeds for WELL, which owns 71% of the business. He said Circle has grown from a US$5-million revenue run-rate in 2020 to more than $100-million, but adds complexity to WELL’s story.

“We believe Circle adds complexity to the business, evident by the billing investigation and impacting valuation with an overhang,” Keywood said.

Keywood said a divestiture of Circle would be relatively small, but could still act as a catalyst by highlighting WELL’s move toward a pure-play Canadian healthcare consolidation model.

The analyst said WELL has also publicly stated its intention to divest some or all of its U.S. assets, including CRH Medical, Wisp and Circle Medical. Keywood estimates the combined value of those assets at more than $500-million.

“We also believe that any one divestiture will serve as a catalyst with a demonstration to the market of the business model refinement and pure-play consolidation pursuits,” he said.

WELL said Circle Medical has more than tripled the number of commercially insured patients eligible to receive care on its platform over the past year and saw strong double-digit growth in new patient bookings and activations in May 2026 compared with May 2025.

“We are moving forward with full focus on our patients and on expanding access to high-quality, insurance-based primary care across the country,” Circle Medical CEO Georgia Psarras said in a press release.

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