Q: Is it timely to add to Well,which I bought a few years ago at much higher price?What is a good entry price?Txs for U usual great services & views
5i Research Answer:
WELL has been consolidating recently amid the broader market pullback from an economic 'growth scare'. WELL should benefit from declining rates as it can pick its M&A activity back up, and without acquisitions, it continues to grow at a fast rate organically. It generates positive free cash flow, it has a buyback strategy in place, and for a high-growth name it trades at a cheap valuation of 15X forward earnings. We would be comfortable slowly adding to a position here, expecting to see support around the $4 area.