Stifel analyst Justin Keywood lowered the firm’s price target on Quipt Home Medical (QIPT) to C$7.50 from C$8.50 and keeps a Buy rating on the shares. Quipt’s financials are favorable compared to peers, but its valuation is “well below” them, notes the firm, which attributes the wide discount partly to an overhang of a DOJ investigation of Quipt’s sleep segment, where there is no claim of wrongdoing. Settlements are typically in the $3M-$6M and the firm sees the $100M market cap drop year-to-date as “too punitive,” warranting a fresh look. The firm believes a downside scenario will not have a material impact, but notes that the investigation has been an overhang on shares.
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