Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS:

Nobilis Moves Forward with New President and New Canaccord Coverage

Share on Stocktwits

Source:

Under the guidance of newly appointed president Kenneth Efird, Nobilis Health Corp. plans to continue to roll out new products and optimize its marketing strategy.

Nobilis locations

Kenneth Efird will oversee Nobilis Health Corp.'s (HLTH:NYSE; NHC:TSX) operating units across the nation, focusing on execution of the company's strategic plan, according to a press release issued on July 11. Prior to stepping in as president, Efird had served as chief operating officer and chief business development officer at Nobilis, which operates surgical hospitals, physician practices and ambulatory surgical centers in Texas and Phoenix.

Since coming on board in 2005, Efird has overseen various aspects of the company's business, including clinical operations, sales and "the rollout of a new marketing strategy, which includes the integration of Athas technologies and the expansion of Nobilis' portfolio of brands," according to the company.

Neil Maruoka, an analyst with Canaccord Genuity who initiated coverage on Nobilis on July 13, pointed out that Athas, the company's "marketing arm," is "a key differentiator and organic growth engine. . .Through its targeted marketing, we believe that Athas has the ability to drive higher case volumes and higher revenue per procedure through Nobilis' facilities."

Canaccord also views Nobilis' surgical facilities "to be steady businesses, providing strong cash generation to underpin our valuation." Maruoka has a rated Nobilis a Buy with a price target of $4.50 per share.

Nobilis (then Northstar Health) acquired Athas Health, a Dallas-based marketing firm, in late 2014. The Athas technology, according to analyst William Sutherland of Emerging Growth Equities, provides Nobilis with an "end-to-end concierge model that begins with direct-to-consumer marketing through post-surgical support."

Back in May, analyst Dana Hambly of Stephens noted that Nobilis' recently launched subsidiary Concertis, a platform that "negotiates bundled payments for surgical procedures with payers covering pre- and post-operative services. . .should start driving case growth in [H2], improving on already solid organic growth."

According to Nobilis, Efird has "played a significant role in the integration of acquisitions," which included three new facilities in 2015 and the launch of Concertis.

"Throughout the past several years of tremendous growth, Kenneth has built an impressive track record of operational and strategic accomplishments," said company CEO Harry Fleming in the press release.

Want to read more Life Sciences Report interviews like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see recent interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosures:
1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or her family owns, shares of the following companies mentioned in this interview: None.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Nobilis Health Corp. Streetwise Reports does not accept stock in exchange for its services. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific analysts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their families are prohibited from making purchases and/or sales of those securities in the open market or otherwise during the up-to-four-week interval from the time of the interview until after it publishes.





Want to read more about Healthcare Services investment ideas?
Get Our Streetwise Reports Life Sciences Report Newsletter Free and be the first to know!

A valid email address is required to subscribe