Babylon Holdings: A Virtual Value-Based Care Leader With Upside

Summary

  • Babylon's growth outlook continues to improve as it builds on its existing capabilities with the acquisitions of DayToDay Health and Higi.
  • In addition to its solid pipeline, Babylon should also benefit from a massive c. $10 trillion global opportunity, underpinning its longer-term growth runway.
  • With shares trading at a wide discount to industry leader Teladoc, I see plenty of scope for upside ahead.
Projecting Improved Profits From Value-Based Care

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With the recent acquisitions of DayToDay Health and Higi, mobile phone-based healthcare application developer Babylon's (BBLN) focus on penetrating the US VBC ("value-based care") market continues to gain traction, supporting the strong growth trajectory ahead. In addition, BBLN's growth runway is helped by a

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Analyst with a keen interest in the global markets, always sifting through company filings in search of compelling opportunities. Approach is heavily centered on the notion that one needs to be non-consensus right in making investment decisions. A keen follower of value investing legends such as Peter Cundill, Seth Klarman, and more recently, Rupal Bhansali.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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