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TICKERS: OTRK

California Biotech Reports Positive QOL Improvements in Program
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With Ontrak Inc.'s (OTRK:NASDAQ) significant results from the first six months of data collected through its implementation of ReQoL, Roth MKM analyst Dr, Jonathan Schoff gave the company a Buy rating.

Roth MKM analyst Dr. Jonathan Aschoff, in a research report published on September 13, 2024, provided an update on Ontrak Inc. (OTRK:NASDAQ) following the company's announcement of significant results from the first six months of data collected through its implementation of the Recovering Quality of Life (ReQoL) measure in its WholeHealth+ program. The analyst maintained a Buy rating and a 12-month price target of US$3.00 on the stock.

Ontrak reported that among members with initially poor quality of life scores, 35% of Medicaid recipients and 18% of commercially insured members showed significant improvements in their ReQoL scores over the six-month period.

Aschoff noted, "The positive ReQol trend aligns with the consistently demonstrated improvements in depression and anxiety as measured by PHQ-9 and GAD-7, which are also evaluations administered with WholeHealth+."

The analyst highlighted the significance of these results, stating, "ReQol is a patient-reported outcome assessment that evaluates the quality of life parameters for those with mental health conditions. More specifically, ReQoL measurements evaluate the impact of mental health conditions, psychological interventions, and healthcare interventions on patients because ReQol focuses on understanding the person over the diagnosis, which is consistent with modern recovery-oriented strategies."

Ontrak's strategic focus includes integrating ReQoL into its WholeHealth+ program to better monitor outcomes and demonstrate the effectiveness of its behavioral healthcare platform. The company's mission is to improve health outcomes for vulnerable members of the behavioral health population through personalized care coaching and customized care pathways.

Roth MKM's valuation methodology for Ontrak is based on a discounted cash flow (DCF) analysis. "Our 12-month price target of US$3 is based on a DCF analysis using a 10% discount rate that is applied to all cash flows and the terminal value, which is based on a 5x multiple of our projected 2031 operating income of US$117 million," Aschoff explained.

With a Buy rating and a price target of US$3.00, representing a potential return of approximately 1,329% from the price at the time of the report of US$0.21, Roth MKM sees significant upside potential for Ontrak. However, Aschoff notes several risk factors, including clinical, regulatory, financing, and competitive risks, as well as high stock price volatility common among small-cap biotechnology companies.


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Important Disclosures:

  1.  This article does not constitute investment advice and is not a solicitation for any 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. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 
  2. This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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Disclosures for Roth MKM, Ontrak Inc., September 13, 2024

Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from Ontrak, Inc.. ROTH and/or its employees, officers, directors and owners own options, rights or warrants to purchase shares of Ontrak, Inc. stock. Shares of Ontrak, Inc. may be subject to the Securities and Exchange Commission's Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. Roth or its affiliates beneficially own(s) 1% or more of an equity security of Ontrak, Inc..

ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months. The material, information and facts discussed in this report other than the information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable, but are in no way guaranteed to be complete or accurate. This report should not be used as a complete analysis of the company, industry or security discussed in the report. Additional information is available upon request. This is not, however, an offer or solicitation of the securities discussed. Any opinions or estimates in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, an investment in the stock may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.





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