Q: Hi 5i, please provide your thoughts on Well's press release today. How does it affect forward valuation for the year, I'm guessing it just got cheaper. Thx.
5i Research Answer:
WELL raised its 2025 guidance, with its revenue forecast bumped to over $450M and its Adjusted EBITDA now expecting to surpass $60M (over 40% growth from 2024). It closed two clinic acquisitions in BC, and its total pipeline now includes 124 clinics. It received an expanded credit facility from RBC. The stock is up over 10% on the news, and we think this can mark a significant pivotal point for the company. We like the potential momentum reversal here, and it trades at an 11X forward earnings, but we expect that analysts might raise their earnings estimates. We feel the news is quite positive and helps to lift some overhanging uncertainties on the name.