Tabula Rasa HealthCare (TRHC), mcap=$112m, price $4.28 vs $5.00

$TRHC pitch:
– Pharmacy service provider priced as if it is heading for bankruptcy.
– 40% market share in its niche of medication risk management.
– Recurring, subscription-based revenue stream.
– Recent and pending non-core software assets sales will bring around $250-$300m and remove liquidity concerns, materially reduce leverage, and simply the equity story.
– The remaining business is set for double-digit annual growth over the next five years.

$TRHC valuation:
– In base scenario by 2023 company generates $308m in revenues (+10% vs 2022) at 9% margin.
– At 15x EBITDA it would be $10.5 stock.

Exp. gain: +100% to $10.5 by 2023.

Full TRHC write-up (free guest account required):

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