1ST playing in a market “there for the taking”: Fosters
On the back of a string of acquisitions in recent times, Fosters Stockbroking expects 1ST Available to capture as much as 30% of the online booking market in the healthcare sector.
Releasing its initiation report on 1ST today, Fosters slapped a price target of 14c on the ASX-listed player, although bear in mind analyst targets are no guarantee to come to fruition.
Its current share price is 5.7c.
Share prices are subject to fluctuation and investors should take a cautious approach to any investment in TKF and not base that decision solely on historical price movements.
Fosters said only 2-3% of Australian healthcare providers were utilising an online booking appointment system, meaning there was a massive opportunity for the likes of 1ST to revolutionise the system and get healthcare providers online.
Assuming a market share of 30%, Fosters has predicted 1ST could take part in a market opportunity worth more than $305 million – calling the sector “there for the taking”.
It has also tipped 1ST to book revenue of more than $7.6 million in the 2018 financial year.
On the back of acquisitions, Fosters said in a note that it expected sales from the company to increase by 592% by the end of the current financial year.
1ST is attempting to build an online hub to connect doctors and patients through a dedicated online portal and suite of apps, consolidating what is currently a fragmented market.
It recently closed in on a deal to acquire OzDocsOnline, potentially adding $63,000 in revenue and boosting its service offering.
It previously said that it would move to acquire OzDocsOnline (ODO) for $150,000.
In exchange, 1ST will acquire an online booking service which is used by 130,000 patients and 8000 doctors.
OzDocsOnline is an online booking service which makes revenue by offering patients online access to their own doctor’s services including: online prescription requests; online access to pathology results; online consultations; and online referrals.
The doctors charge patients a flat fee to use each service.
In the 2016 financial year OzDocsOnline took in $310,000 in revenue, with $63,000 of that retained by the company while the rest was distributed to the doctors.
For 1ST, the deal is the latest of a string of deals completed in the last year including the acquisitions of DocAppointments, Clinic Connect, and GObookings.