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.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.