WELL Health Technologies: this analyst just raised his price target

Paradigm Capital analyst Daniel Rosenberg says WELL Health Technologies’ (WELL Health Technologies Stock Quote, Chart, News, Analysts, Financials TSX:WELL) WELLSTAR spinout should unlock capital for acquisitions or balance sheet strength.

In a July 8 update, Rosenberg reiterated his “Buy” rating on WELL and raised his target to $7.25 from $7.00.

Rosenberg said WELL is establishing itself as a large provider of tech-enabled healthcare delivery, with leadership positions in Canada and strategic assets in HEALWELL and WELLSTAR that could support international expansion.

WELL announced the spinout of WELLSTAR Technologies into a standalone public company through a reverse takeover and TSX Venture Exchange listing. The transaction is expected to close Sept. 16 and includes a concurrent $50-million financing at $10.00 per share.

“The spin-out of WELLSTAR will result in significant value creation that WELL can deploy toward its highly effective M&A program or strengthen its balance sheet,” Rosenberg said.

WELLSTAR holds WELL’s digital healthcare and software assets, including OceanMD, OSCAR Pro, PatientSERV and Doctorcare. Its segments include digital health networks, clinical platforms, and billing and practice management.

Rosenberg also pointed to Nexus AI, WELLSTAR’s agentic clinical AI platform, which includes tools for medical scribing, inbox triage, task management and appointment workflows. Nexus AI was qualified under the Canada Health Infoway AI Scribe program.

WELLSTAR expects 2026 revenue of $95-million, representing a three-year historic compound annual growth rate of 20%, with an Adjusted EBITDA margin of 21%, or about $20-million. The company generated revenue of $72-million in 2025 and $45-million in 2024.

Rosenberg estimates the concurrent financing values WELLSTAR at about $435-million post-money, with WELL retaining slightly more than 50% ownership.

The analyst expects WELL to generate Adjusted EBITDA of $191.4-million on revenue of $1.59-billion in fiscal 2026, improving to Adjusted EBITDA of $219.1-million on revenue of $1.72-billion in fiscal 2027.

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

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