Signify Health shares surge on BTIG coverage, buyout prospects
September 2, 2022
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Signify Health Intrinsic Value –
Signify Health($NYSE:SGFY) shares surged in pre-market trading Wednesday after BTIG launched its coverage on the home health service provider with a Buy recommendation. The analysts noted the company’s buyout potential, citing recent news reports indicating that health insurers UnitedHealth Group Inc, CVS Health Corp, and eCommerce giant Amazon were eyeing a deal to acquire the company. “Our view is that SGFY is a unique asset in the space which makes it high-value to plans and provider clients as well as potential strategic acquirers,” the analysts wrote, assigning a $35 per share target for the stock. It remains to be seen how this potential acquisition will affect Signify Health’s market and earnings in the long term.
However, the BTIG analysts are bullish on the company’s prospects, citing its unique position in the healthcare industry.
Stock Price
On Wednesday, Signify Health shares surged on BTIG coverage, with the stock opening at $28.0 and closing at $27.9, up 1.1% from the previous closing price of 27.6. The surge was driven by prospects of a potential buyout, with BTIG analyst Kevin Copeland saying that the company could be an attractive target for strategic buyers. Copeland added that Signify Health’s technology platform and data assets could be valuable to larger health care companies looking to expand their presence in the growing market for population health management.
VI Analysis – Signify Health Intrinsic Value
Companies with strong fundamentals are usually seen as having long-term potential. This is because their financials and other key indicators reflect their ability to withstand market fluctuations and continue growing. The VI Line app makes it easy to see the intrinsic value of a company’s shares. For SIGNIFY HEALTH, the intrinsic value is around $16.8. This means that the current share price of $27.9 is overvalued by 66%.
Summary
The firm sees Signify Health as a “unique” player in the growing market for at-home health services, and believes the company is well-positioned to capitalize on the trend. BTIG believes there is potential for a buyout of Signify Health, citing the company’s “attractive” valuation and the recent consolidation in the healthcare industry.
