SeeThruEquity Issue Update on Progressive Care, Inc. (OTC: RXMD) Highlighting Recent Achievements
Accesswire 59 minutes ago
NEW YORK, NY / ACCESSWIRE / June 27, 2016 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued an update on Progressive Care, Inc. (RXMD) with a price target of $0.10.
The report is available here: RXMD June 2016 Update. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will be available on these platforms. The firm also contributes its estimates to Thomson Estimates, the leading estimates platform on Wall Street.
"We are maintaining our $0.10 price target for RXMD at this time. With strong recent results marked by positive Net Income and operating cash flow, RXMD represents an attractive growth story in the healthcare sector. It is also worth noting out that healthcare and related companies have some shielding against many of the factors recently affecting the broader equity markets - given the outsized role of regulation and healthcare-specific factors on the industry. We would think this would be true for RXMD as well - especially if it is able to continue to execute on its business objectives and show continued growth in revenues and cash flow leverage.," stated Ajay Tandon, CEO of SeeThruEquity.
Additional highlights from the update are as follows:
Rising prescription demand drives record revenues in 1Q16
Progressive Care reported strong results in its first reporting quarter since we initiated coverage on the company in April. Results bolstered by strong demand for prescriptions, which grew by 30%+ to approximately 51,000 during the quarter. Progressive Care was able to grow revenue by 26.7% YoY, with the top line reaching $3.95mn - a record for the company - versus $3.12mn in 1Q15. The results position the company well to meet or exceed both our estimated revenues of $16.1mn and RXMD's guidance of $16.0mn. Importantly, Progressive Care was able to achieve margin expansion as well, with gross margins improving by 280 basis points to 23.5% versus 20.7% in 1Q15. The company also generated GAAP Net Income and operating cash flow during the quarter.
Strong growth continues into 2Q16
Progressive Care's strategy appears to be gaining traction in the market as the company has been successful in demonstrating strong growth over the last two years and continues to expand in 2016. After reporting strong April results in which prescriptions filled rose by 20% YoY to 16,500 and revenues came in at $1.4mn, the company reported nice sequential improvements in May, with $1.4mn in revenue and prescriptions filled rising to 17,500. This represented YoY growth of 22% and 28%, respectively.
Maintain price target of $0.10 for RXMD
We are maintaining our price target for RXMD at this time. We are impressed by 1Q16 results and see the company as on track to meet or exceed our estimates for the year. With strong recent results marked by positive net income and operating cash flow, RXMD represents an attractive growth story in the healthcare sector. It is also worth pointing out that healthcare and related companies have some shielding against the factors affecting the broader markets given the important role of regulation and industry-specific factors on the industry. We would think this would be true for RXMD as well, if it is able to continue to execute on its business objectives and show continued growth in revenues and cash flow. If achieved, the price target of $0.10 represents potential upside of 200% from the recent price of $0.04 and a potential Enterprise Value of $33.7mn, which we see as appropriate for a company growing at double-digit organic growth rates with $16mn in sales in FY16E and several potential additional catalysts ahead.
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