The adoption of virtual healthcare services accelerated during the COVID-19 pandemic, driving shares of digital healthcare companies higher, including WELL Health Technologies (TSE:WELL).
However, concerns about growth and general selling in the market eroded a significant portion of value from WELL stock. Notably, shares of WELL Health have declined more than 41% from their 52-week high.
Now What?
Despite the concerns, WELL Health continues to grow rapidly, benefitting from acquisitions and ongoing strength in its underlying business. It recently reported stellar financial numbers and provided upbeat guidance, which is encouraging.
WELL Health’s top line jumped 573% year-over-year in Q4. Meanwhile, revenues soared 502% in 2021. Further, the company continued to deliver positive adjusted EBITDA.
As for 2022, WELL Health expects to deliver revenues of more than C$500 million. Moreover, the company sees 2022 as a profitable year and expects to deliver positive adjusted net income.
Commenting on the 2022 guidance, WELL Health’s CEO, Hamed Shahbazi, stated that the company is well-positioned to deliver strong financial results in the next few quarters “with sustained organic growth.” Moreover, it plans to enhance shareholders’ returns through share buybacks.
Bottom Line
WELL Health continues to deliver stellar financials, and the company’s guidance suggests that the momentum in its business will likely sustain in 2022. Its growing scale, solid organic sales, strength in the U.S. business, and strategic capital allocation strategy bode well for future growth.
Analysts maintain a bullish outlook on WELL Health stock. It has received six unanimous Buy recommendations for a Strong Buy consensus rating. Moreover, due to the significant correction in its price, WELL Health’s stock price forecast on TipRanks shows strong upside potential. The average WELL Health price target of C$9.25 implies 77.5% upside potential to current levels.
Besides analysts, TipRanks’ investors also have a positive outlook on WELL stock. It’s worth noting that 2.5% of investors holding portfolios on TipRanks have increased their stake in WELL stock in the last seven days.
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