On Thursday, Litchfield Hills Research initiated coverage on SHL Telemedicine (NASDAQ:SHLT), assigning the stock a Buy rating with a price target of $11.00. The firm's analysis suggests that the shares are currently undervalued, a conclusion supported by two distinct valuation methods.
The $11 price target for SHL Telemedicine is derived from a discounted earnings model, indicating a positive outlook on the company's financial performance. Litchfield Hills Research further compared SHL Telemedicine to a group of similar companies and found that it is trading at a discount to the peer group averages.
According to the analyst from Litchfield Hills Research, if SHL Telemedicine's shares were to reach the $11 price target, its 2025 Market Cap/Sales ratio would be above the average of its peers. However, the analyst noted that it would still be within the range of the comparable companies, suggesting room for growth without reaching an overvalued status.
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