Quipt Home Medical stock price target raised to $2.30 from $1.70 at Canaccord

Investing.com - Canaccord Genuity raised its price target on Quipt Home Medical (TASE:BLWV) Corp. (NASDAQ:QIPT) to $2.30 from $1.70 on Tuesday, while maintaining a Hold rating on the stock. The new target still sits below the average analyst target of $4.50, with InvestingPro data showing the stock currently trades below its Fair Value.

The price target increase follows Quipt’s third-quarter results, which showed sequential improvement across metrics despite year-over-year declines. With revenue of $238.4 million and a robust gross margin of 72.5%, the company continues to work through headwinds including a Humana (NYSE:HUM) MA capitated contract and a disposable supply contract non-renewal. InvestingPro analysis reveals several positive indicators, including expected net income growth this year. Get access to 6 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.

Quipt announced a joint venture with three health systems in the Midwest, acquiring a 60% stake in Hart Medical for approximately $17-18 million in cash. This acquisition establishes Quipt’s presence in Michigan and northern Ohio across 29 locations, marking its second health system partnership in recent months.

The company previously acquired the DME business from Ballad Health in eastern Tennessee and southern Virginia, which included a preferred provider agreement with Ballad’s 20 hospitals in the region. Management expects margins from these partnerships to align with the broader business within three quarters post-closing.

Despite improvements in EBITDA margins both year-over-year and sequentially, with EBITDA reaching $41.1 million, Canaccord noted that EBITDA performance isn’t translating to cash generation, with management citing additional patient capex to replace Philips ventilators stemming from a recall that could continue into early 2026. For deeper insights into Quipt’s financial health and detailed valuation metrics, check out the comprehensive Pro Research Report available exclusively on InvestingPro.

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