OnTrak (OTRK) PT Raised to $50 at Benchmark on New CEO

March 17, 2021 7:30 AM EDT
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Price: $29.71 +2.59%

Rating Summary:
    3 Buy, 2 Hold, 0 Sell

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Today's Overall Ratings:
    Up: 6 | Down: 16 | New: 68
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Benchmark analyst Bill Sutherland raised the price target on OnTrak (NASDAQ: OTRK) to $50.00 while maintaining a Buy rating after the company announced the appointment of CVS Health EVP and Chief Transformation Officer Jonathan Mayhew as CEO effective April 12.

The analyst commented, "Yesterday, Ontrak announced the appointment of CVS Health (CVS – NR) EVP and Chief Transformation Officer Jonathan Mayhew as CEO effective April 12. Terren Peizen, Ontrak’s founder and current Chairman and CEO, was named Executive Chairman. With this step, Ontrak has further strengthened its senior management leadership. that began with the hiring in late 2019 of Optum alum Curt Medeiros as President. Further, Mr. Mayhew’s relationships across the CVS/Aetna platform certainly improves OTRK’s chances of eventually re-establishing a contract with that client. As we wrote last week, based on a high level of late-stage new business opportunities, we think the $11M of “go get” revenue to achieve the 2021 revised revenue target of $100M is reasonable, and we consider our initial view of 2022 as having a conservative bias. We also expect some positive news (release of 3 rd party validated study, M&A, new business) to be hitting the tape during the next 1-2 months that should lead to improving investor sentiment. Our price target goes to $50 based on 2021 valuation still a discount to peers."

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