Why A Northstar Analyst Is Bullish On This Disruptive MedTech Company

A strong value proposition and high retention rate have turned Northland Capital Markets bullish on Biotricity, Inc BTCY.

The Biotricity Analyst: Analyst Jason Wittes initiated coverage on Biotricity with an Outperform rating, setting a share price target of $7.

The Biotricity Takeaways: Biotricity has “disrupted the $1 billion Mobile Cardiac Telemetry (MCT)” market and offers a strong value proposition “with improved technology and significantly better economics for the doctors,” said Wittes in a Thursday note.

Competitors are slow to adapt to the shift Biotricity is catalyzing and are struggling to keep up with the MedTech company’s “ever-expanding and vertically integrated technology platform,” Wittes added.

Biotricity has a growing base of 1,300 cardiologists, representing around 2.6 million patients, according to the analyst note. The company has maintained a 99% retention rate, providing a robust recurring revenue stream, the analyst said.

Though the current focus remains on MCT, Biotricity plans to expand its TaaS model to other remote monitoring markets and even intends to leverage its tech and cardiologist base to create a “full-service complex cardiac management system,” Wittes said, with a TAM of $50 billion.

The $7 price target is based on a peer-aligned 12x EV/Sales multiple with estimated 2023 revenue of $23.6 million.

BTCY Price Action: Shares of Biotricity, Inc. were 11.45% to $3.51 at market close Thursday.