Citron Research Predicts Benefytt Stock Price will Surpass $60
Citron Research, one of the longest-running stock commentary websites, recently noted that the Coronavirus pandemic is the moment that will make telemedicine mainstream.
And Benefytt Technologies (BFYT) is at “the forefront of this megatrend,” according to Citron. As a result, Citron predicts that Benefytt’s stock will surpass $60 by the end of this year.
Citron’s full report came on the heels of a recent White House briefing to the country in which the need for more telemedicine offerings for seniors emerged as a key theme. HHS Secretary of Healthcare, Alex Azar, especially noted telemedicine to be “the future of healthcare.”
Rapidly growing medicare advantage enrollment
The first half of the Citron report addresses Benefytt’s role in Medicare Advantage and Telemedicine.
According to Citron:
“There are 10,000 people turning 65 everyday. The importance of Medicare Advantage cannot be overstated, and Benefytt Technologies is using a suite of products to become a top 5 nationwide broker for Medicare Advantage.”
Over the past decade, enrollment in Medicare Advantage has nearly doubled to 22 million enrollees.
That’s why Benefytt has made strategic acquisitions, beginning with TogetherHealth, PAP LLC, a brokerage that generates over 1 million Medicare Advantage leads annually. TogetherHealth is the entity behind the Joe Namath Medicare Advantage television commercials, which advertise to Medicare beneficiaries to get the “benefits you deserve.”
Secretary Azar recognized the value in these types of ads:
“On its surface, this doesn’t look or sound like the future of healthcare—but it represents important work done here at the department, placing patients at the center and providing them with a tailored set of benefits that will keep them healthy and keep their costs affordable. We’ve delivered significant results on affordability over the past year.”
In March 2020, Benefytt also announced its acquisition of healthinsurance.com, a direct-to-consumer website that offers plan comparison tools for Medicare Advantage, Medicare Part D, and Medicare Supplement plans, among other private health insurance options. Consumers can also purchase telemedicine services from healthinsurance.com.
During the second half of 2019, Benefytt generated approximately 50,000 approved Medicare Advantage applications alone, thanks to the company’s acquisitions.
Behind Citron Research’s analysis
To conduct its report, Citron Research visited Benefytt’s headquarters to meet with management, spoke with Benefytt employees, connected with competitors, and talked with numerous industry experts to get the most complete picture.
The entire report can be found at citronresearch.com
The opinions expressed in this article regarding Benefytt’s stock price are those of Citron Research and do not necessarily reflect the official policy or position of Benefytt Technologies, Inc. Citron is an investor in Benefytt Technologies. As of the publication date of a Citron Research report, Citron Related Persons (possibly along with or through its members, partners, affiliates, employees, and/or consultants), Citron Related Persons clients and/or investors and/or their clients and/or investors have a position (long or short) in one or more of the securities of a Covered Issuer (and/or options, swaps, and other derivatives related to one or more of these securities), and therefore may realize significant gains in the event that the prices of a Covered Issuer’s securities decline or appreciate. Citron Research, Citron Capital and/or the Citron Related Persons may continue to transact in Covered Issuers’ securities for an indefinite period after an initial report on a Covered Issuer, and such position(s) may be long, short, or neutral at any time hereafter regardless of their initial position(s) and views as stated in the Citron research. Neither Citron Research nor Citron Capital will update any report or information to reflect changes in positions that may be held by a Citron Related Person. To learn more about it’s position and holdings, visit www.citronresearch.com
This content contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical fact, and may include statements relating to goals, plans and projections regarding new markets, products, services, growth strategies, anticipated trends in our business and anticipated changes and developments in the United States health insurance system and laws. Forward-looking statements are based on Benefytt Technologies, Inc.’s (the “Company’s”) current assumptions, expectations and beliefs are generally identifiable by use of words “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue,” or similar expressions and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements. These risks and uncertainties include, among other things, uncertainty regarding the duration and magnitude of the COVID-19 pandemic, our focus on the Medicare market, our ability to maintain relationships and develop new relationships with health insurance carriers and distributors, our ability to retain our members, the demand for products offered through our platform, regulatory oversight and examinations of us and our carriers and distributors, legal and regulatory compliance by our carriers and distributors, the amount of commissions paid to us or changes in health insurance plan pricing practices, competition, changes and developments in the United States health insurance system and laws, and the Company’s ability to adapt to them, the ability to maintain and enhance our name recognition, difficulties arising from acquisitions or other strategic transactions, and our ability to build the necessary infrastructure and processes to maintain effective controls over financial reporting. These and other risk factors that could cause actual results to differ materially from those expressed or implied in our forward-looking statements will be discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) as well as other documents that may be filed by the Company from time to time with the Securities and Exchange Commission, which are available at www.sec.gov. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. You should not rely on any forward-looking statement as representing our views in the future. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.