PharmaCorp Rx Inc. (PCRX.V) was rated Outperform with a $0.70 price target in new coverage at Raymond James.
Analyst Fred Gatali initiated coverage of the Saskatoon, Saskatchewan-based retail pharmacy acquisition and ownership company.
Gatali said PharmaCorp has access to more than 1,100 independently-owned pharmacies and holds a right-of-first-refusal to acquire them.
"In addition, the company has a retail collaboration agreement with McKesson Canada's 2,000+ independent pharmacies as a partner in supporting owners who are considering ownership changes or need longer-term capital solutions," the analyst said in a note to clients.
"Notable is what we consider to be a flexible exit structure PharmaCorp provides to sellers, which we view as an important element of its acquisition strategy, which may allow an owner to monetize their pharmacy, but remain involved in the business to preserve customer relationships, support staff continuity, and maintain a role in the local community."