Petra Capital rates ((BMT)) as Initiation of coverage with Buy...

Petra Capital rates ((BMT)) as Initiation of coverage with Buy (1)

Petra Capital initiates coverage on health-technology company Beamtree with a Buy rating and 77c target price.

The broker views Beamtree as an under-appreciated Medtech company with an attractive global footprint; admires the defensive recurring revenue streams embedded in critical infrastructure (management guides to $50mm annual recurring revenue over five years); and spies appealing end-markets.

Petra notes the company is well on track to achieve revenue targets, is already profitable, and enjoys software leverage in an attractive industry.

The company has made three acquisitions and still has sufficient funds for the product development cycle, says the broker. Beamtree offers a three-year compound average rate of 68% and trades at a discount to peers.