Let's see why Raymond James has provided an "Outperform" rating and a $9.00 target.
From the report:
Following our review of Quipt Home Medical’s (QIPT-NASDAQ, OP2) 1Q22 earnings (see our note: 1Q22: In-line Rev., +EBITDA | This Stock Works in Risk-off Market: Rev., Profit, Org. Growth), we update our models, aligning with management guidance of CYE22 Rev. run-rate of $180-$190 mln, and Adj. EBITDA run-rate of $38-$43 mln.
QIPT stock has come off (29%) during the last 12 months (vs. NASDAQ down [0.2%]), dragged down by a broader sell-off in risk-on biotech and healthcare names (e.g. XBI down [49%] and UMDV down [34%]). In light of QIPT’s solid generation of Rev. and sustained >20% +EBITDA margins during the last few years, we reiterate that we view QIPT as a defensive name in this environment and see its current share price as a great opportunity for our clients to add to positions, particularly given our visibility on the company’s near-term Rev. growth.
We maintain our target price of US$9.00, and reiterate our Outperform rating.
Read the full report here.
#2. QIPT Potential Catalyst - Revenue Growth In 2021 (And Q1 2022)
Since the beginning of the year, the company has made two major announcements in regards to revenue growth and operational highlights.
Quipt Home Medical Reports Record First Quarter Fiscal 2022 Fin-an-cial Results
From the article:
- Revenue for Q1 2022 was $29.5Mn compared to $22.8Mn for Q1 2021, representing a 30% increase in revenue year-over-year.
- Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 51,137 for the three months ended December 31, 2021, compared to 34,996 for the same period ended December 31, 2020, an increase of 46%.
- The Company’s customer base increased 45% year over year from 51,836 unique patients served in Q1 2021 to 75,309 unique patients in Q1 2022.
- Compared to 118,100 unique set-ups/deliveries in Q1 2022, the Company completed 76,691 unique set-ups/deliveries in Q1 2021, an increase of 54%.
Quipt Home Medical Reports Record Fourth Quarter and Fiscal Year 2021 Fin-an-cial Results
From the article:
- Revenue for fiscal year 2021 was $102.4Mn compared to $72.6Mn for fiscal year 2020, representing a 41% increase in revenue year-over-year. Compared to fiscal year 2020, the Company experienced organic growth of 10%.
- Through the Company’s continued use of technology and centralized intake processes, respiratory resupply set-ups and/or deliveries increased to 158,072 for the year ended September 30, 2021, compared to 61,468 for the year ended September 30, 2020, an increase of 157.2%.
- The Company’s customer base increased 53.8% year over year to 140,996 unique patients served in fiscal year 2021 from 91,650 unique patients in fiscal year 2020.
- Compared to 253,113 unique set-ups/deliveries in fiscal year 2020, the Company completed 364,367 unique set-ups/deliveries in fiscal year 2021, an increase of 44%.
#3. QIPT Potential Catalyst - Major 2022 Acquisition Announcement
Quipt Adds $13Mn in Annualized Revenue, $1.6Mn in Net Income, Anticipated $2.9Mn of Adjusted EBITDA Post Integration and 15,000 New Active Patients With Acquisition of Indiana Based Company
CINCINNATI, Jan. 04, 2022 (GLOBE NEWSWIRE) -- Quipt Home Medical Corp. (“Quipt” or the “Company”) (NASDAQ:QIPT; TSXV:QIPT), a U.S. based leader in the home medical equipment industry, focused on end-to-end respiratory care, is very pleased to announce that it has acquired At Home Health Equipment, Inc. (“At Home Health Equipment”), a business with operations in Indiana, reporting unaudited trailing 12-month annual revenues of approximately $13Mn and $1.6Mn in net income with anticipated Adjusted EBITDA (defined below) of $2.9Mn (22% margin) post integration. As a reminder all figures stated are in USD.
The acquisition creates Quipt’s single largest market from a revenue standpoint, covering the entire coverage sphere of Indianapolis. At Home Health Equipment has been a leader in the respiratory home care services space for over 25 years and has several difficult to obtain insurance contracts that significantly enhance Quipt’s presence in the region. With a new location, covering an entire service area of Indianapolis, the acquisition adds to Quipt’s active patient count by over 15,000, bringing Quipt’s total to approximately 170,000 active patients. At Home Health Equipment has a strong management team in place, and like Quipt, offers high-quality service, equipment and supplies. The expansionary operating footprint aligns closely with regions that have a high prevalence of Chronic Obstructive Pulmonary Disease (“COPD”), a key target patient group; Indiana is among the highest prevalence U.S. States. According to the National Institutes of Health (NIH), about 443,000 people in Indiana have COPD.
Moreover, At Home Health Equipment has a strong revenue base, with over 30% stemming from exclusive contracts in the hospice segment, opening a new vertical for Quipt to strategically build throughout 2022. Additionally, there is solid diversification amongst referral sources, and a payor base, with exposure to less than 20% from Medicare. Furthermore, At Home Health Equipment does not have current exposure to ventilation therapy, providing Quipt a significant growth opportunity to introduce its clinical ventilation therapy program as well as complimentary clinical respiratory products and services. In addition, At Home Health Equipment provides Quipt the opportunity to add patients to Quipt’s existing subscription-based resupply program, and Quipt expects that it would derive strong revenue synergies from this initiative.
Under the terms of the definitive purchase agreement, Quipt acquired the business for approximately $13.1Mn in cash. It is expected the acquisition will increase Quipt’s annual revenues by approximately $13Mn, and, post integration, Adjusted EBITDA by $2.9Mn (22% margin).
The non-binding letter of intent for the acquisition by Quipt of At Home Health Equipment was announced by Quipt on November 16, 2021.
Read the full article here.
#4. QIPT Potential Catalyst - Another Low Float Profile
According to the Yahoo Finance website, QIPT has a relatively low float.
The website reports this profile to have approximately 32.01Mn shares in its float.
Why is that important? It's important on one crucial level. Volatility.
With so few shares available for trading, other potential catalysts (like big news) could spark a vertical move in the short-term.
QIPT Recap: 4 Potential Catalysts To Know About Your New Nasdaq Profile
#1. Unreal Analyst Coverage And A Significant Target
#2. Revenue Growth In 2021 (And Q1 2022)
#3. Major 2022 Acquisition Announcement
#4. Another Low Float Profile
Coverage is officially initiated on QIPT. When you've got a moment later, do this: