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Investing.com - Benchmark has reiterated its Buy rating and $4.00 price target on Quipt Home Medical Corp. (NASDAQ:QIPT) following the company’s fiscal third-quarter results. According to InvestingPro data, the stock currently trades at an attractive valuation with a strong free cash flow yield of 21%.
Quipt demonstrated a return to sequential organic revenue growth and solid AEBITDA margin performance in its latest financial report, according to Benchmark’s analysis. The company maintains a healthy gross profit margin of 72.5%, with InvestingPro analysis indicating strong financial health scores.
The medical equipment provider announced a joint venture with three healthcare systems, acquiring a 60% stake in a $60 million durable medical equipment (DME) provider. This follows an early July acquisition of a $6.6 million DME provider, which will bring Quipt’s revenue run rate to approximately $300 million in calendar fourth quarter.
Benchmark highlighted three significant aspects of these acquisitions: they demonstrate management’s confidence in the existing business with more stable trends for equipment rental and resupply; they are derisked by bringing patient referral bases from regional health systems; and they align with Quipt’s financial M&A parameters.
The research firm believes its updated fiscal year 2026 model for Quipt may have a conservative bias, citing the company’s long track record of successful acquisition integrations. While currently not profitable, InvestingPro analysts expect positive earnings this year, with EPS forecasted at $0.21. Get access to 7 more exclusive ProTips and comprehensive analysis in the Pro Research Report.
In other recent news, Quipt Home Medical Corp reported its third-quarter earnings for fiscal year 2025, which showed a larger-than-expected net loss. The company posted an earnings per share of -$0.07, missing analysts’ forecast of -$0.0357. Revenue was reported at $58.3 million, slightly below the anticipated $59.35 million. In addition to the earnings report, Forager Capital Management has submitted a proposal to acquire all outstanding shares of Quipt Home Medical for $3.10 per share in cash. Forager, which already holds a 9.7% stake in Quipt, stated that the acquisition proposal is not contingent on any due diligence or financing conditions and could be executed immediately. These recent developments have drawn attention to Quipt Home Medical’s current financial and strategic situation.
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