William Blair initiated research coverage of Apollo Medical Holdings, Inc. (AMEH $39.14), a physician-led and technology-enabled advanced primary care partner, responsible for coordinating care for more than 1.2 million patients.
Analyst Ryan Daniels estimated that the company would generate total revenue of $1.084 billion and adjusted EBITDA of $150.6 million in 2022; revenue of $1.238 billion and an adjusted EBITDA of $162.1 million in 2023; and revenue of $1.421 billion and adjusted EBITDA of $188.7 million in 2024.
“ApolloMed uses a highly scalable and replicable operating model that allows provider partners to operate in any type of reimbursement model and across all payer types,” Daniels said. “ApolloMed is also one of the few scaled providers actively managing Medicaid lives, with Medicaid representing more than one-quarter of payer mix and the vast majority of at-risk lives under management, by our estimate, in the first half of 2022. Moreover, the organization is focused on delivering ‘culturally competent care’ to meet the unique needs of its diverse patient population.”
Daniels continued, “The model is also supported by a comprehensive technology platform, featuring industry-leading predictive analytics and real-time remote-patient monitoring, or RPM, technologies. Unlike most other value-based care providers, the ApolloMed platform also includes a number of payer tools, which we believe help improve the speed of care delivery and reduce provider abrasion. Lastly, Apollo Medical holdings has a deep, nimble, and experienced management team comprising pioneers in the VBC space. This management team has also built a strong, mission-driven culture, which we believe can drive consistent operating results.”
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Current Ratings Distribution (as of 9/20/22)
Outperform (Buy): 73%
Market Perform (Hold): 26%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 15%
Market Perform (Hold): 4%
Underperform (Sell): 0%
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