UPDATE: BTIG Starts Sharecare inc. (SHCR) at Buy, $15 PT

July 28, 2021 6:25 AM EDT
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Price: $8.60 -1.94%

Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 5 | New: 36
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(Updated - July 28, 2021 8:47 AM EDT)

BTIG analyst David Larsen initiates coverage on Sharecare inc. (NASDAQ: SHCR) with a Buy rating and a price target of $15.00.

The analyst commented, "We are initiating coverage of Sharecare, Inc. (SHCR) with a Buy rating. Sharecare is the industry's solution to "digital health overload." The company brings to its clients an effective way to manage health and wellness of employees and members, deliver medical-record and value-based-care solutions to providers, and enhance the efficacy of focused communications, and sales efforts, from bio-pharma to members and patients. The company operates 3 divisions including (1) Enterprise, (2) Provider and (3) Consumer. Within Enterprise, the company services 8.8M lives, 9+ large plans, 27 direct-large employers, and 10 public sector clients. We like how SHCR integrates a wide array of solutions into a single platform that helps benefits managers create a portfolio of digital-health solutionsfor membersthat can drive health and wellness, as well as more effective episodic care. As the market 'overloads' on digital-health apps, SHCR brings a "one-stop-shop" to customers that want "menu access" to one of the most comprehensive suite of solutions available in the market. Products and services include health and benefits navigation, digital therapeutics, chronic condition programs, measurable outcomes and rewards, and more. We estimate that with just ~3 clients, SHCR has access to ~80M+ additional lives that can roll onto the platform, which is up from ~9-10M currently. SHCR has several key clients with good traction, including Anthem (ANTM, NR), Centene (CNC, NR), Humana (HUM, NR), and Walmart (WMT, NR). We like how 'Enterprise' is ~60% of revenue, recurring, PMPM based, and growing. The 'Provider' division generates ~25% oftotalrevenue, and servicesmainly hospitalsystems and plans. Solutions within Provider include medical record retrieval, value-based-care, payment integrity, remote patient monitoring, and patient engagement. We like how COVID will likely turn into a tailwind for the Provider segment, the medical record retrieval business seems stable, and SHCR brings a comprehensive solution to providers that enables them to win in risk-bearing deals. Within the Consumer division, SHCR works with Life Sciences to implement 'campaigns' that introduce members and patients to pharmaceutical products that can treat certain conditions. These campaigns are focused and specific. We like how SHCR serves multiple key sectors of the healthcare industry, the revenue stream is mainly recurring or highly visible, the management team has delivered positive adjusted EBITDA, and we expectthe firm's earningsmarginsto expand through 2023E. While many health-tech companies can promise high-revenue growth rates, SHCR also delivers earnings. We initiate on SHCR with a Buy rating and PT of $15."

For an analyst ratings summary and ratings history on Sharecare inc. click here. For more ratings news on Sharecare inc. click here.

Shares of Sharecare inc. closed at $6.56 yesterday.


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