Exela Technologies, Inc. (NASDAQ: XELA) revealed that it has made a strategic investment in UBERDOC, Inc. Shares of Exela tanked 10.7% on Friday but gained 3.1% in the extended trading session and a further 6.8% in Monday’s pre-market trade.
While Exela is a global business process automation company, UBERDOC provides a patient access and price transparency platform, currently hosting over 4,000 active specialists and primary care doctors, which connects patients to top doctors for in-person and virtual appointments.
The strategic initiative is expected to boost UBERDOC’s direct-pay specialist network and Exela’s digital healthcare footprint.
Specifically, UBERDOC users will get priority access to leading specialists with price disclosure and will be able to submit eligible direct-pay costs to their insurance plan for reimbursement and application towards their deductible.
Further, its active specialists will have plug & play access to Exela revenue cycle management solutions and can leverage a suite of digital transformation and intelligent automation solutions across all billing models.
“We are thrilled to partner with UBERDOC in building a healthier world with technology that expands access to quality care and brings much-needed efficiency and price transparency to the healthcare system,” said, Matt Brown, the Global Head of Business Strategy at Exela.
Stock Rating
Last week, B.Riley Financial analyst Zach Cummins downgraded Exela’s rating to Hold from Buy and lowered the price target to $0.55 from $3. The new price target implies 35.4% upside potential from current levels.
Cummins is of the opinion that Exela’s business fundamentals have continued to improve but at a slower pace than previously expected. Also, he believes that liquidity remains a key concern for investors.
The stock has a Moderate Buy consensus rating based on one Buy and one Hold. Exela’s average price target of $1.28 implies 215.1% upside potential to current levels.
Positive Sentiment
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Exela, as 4.7% of investors increased their exposure to XELA stock over the past 30 days.
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