Custom Health secures Stifel’s Buy rating and a C$12 target, citing a 98% medication adherence rate and $0.5 trillion US healthcare cost savings potential.
Stifel initiated coverage on Custom Health Holdings Inc (TSX:CHLT) with a Buy rating and a C$12 price target, highlighting potential upside to C$18. The firm emphasized the company’s platform addressing medication non-adherence, which costs the US healthcare system $0.5 trillion annually.
Custom Health’s solution includes the Spencer pill-dispensing device, AI-driven AdhereNet platform, and automated pharmacies, achieving a 98% adherence rate. The company serves over 100,000 contracted patients through deals with major insurers like Humana and BlueCross BlueShield, with active patients expected to rise from 6,000 to 17,000 next year.
The platform also aids opioid prescription management, aligning with the NOPAIN Act. Stifel projects revenue more than doubling, supported by the recent InnovativeRx acquisition.