Shares of CRH Medical (CRH) were revisited by a Wall Street analyst on March 14. Analyst Noel Atkinson from Clarus remains bullish on the stock.
Atkinson wrote:
“We believe a period of calm for reimbursement rates will be positive for investor sentiment and we reiterate our Buy rating. SOLID Q4/18 RESULTS, AND RATE STABILITY EXPECTED FOR 2019 Yesterday CRH reported solid Q4/18 results. The Company generated revenues of US$32.0MM in the seasonally strong Q4, which was in line with our forecast. Revenues for the quarter were up +5% Y/o/Y (pro forma for IFRS 15 accounting change in 2018), and we consider this a strong result given the fee headwinds experienced in 2018 and a lower volume of acquisitions in Q4/18 than we anticipated. I portfolio of 100%-owned assets (such as the flagship GAA practice in Atlanta) performed well again in Q4. Procedure volumes of 81,528 were ahead of our 79,900 forecast.”
Atkinson has an average return of 21.9% when recommending CRH Medical.
According to TipRanks.com, Atkinson is ranked #336 out of 5256 analysts.
CRH Medical has an analyst consensus of Moderate Buy, with a price target consensus of C$5.50, representing a 40.3% upside. In a report released today, RBC Capital also reiterated a Buy rating on the stock with a C$5.50 price target.
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CRH Medical’s market cap is currently C$280.8M and has a P/E ratio of 43.7. The company has a Price to Book ratio of 3.04.
CRH Medical Corp. engages in the provision of gastroenterologists with innovative services and products for the treatment of gastrointestinal diseases. It offers CRH O’Regan System, which focuses on physician education, patient outcomes, and patient awareness. The company was founded in 2000 and is headquartered in Vancouver, Canada.
The company’s shares closed on Monday at C$3.92.
