Benchmark Mark Palmer has begun reporting on Semler Scientific (SMLR) with a purchase rating and a price target of $101, citing the company's dramatic pivots, from medical diagnosis to Bitcoin.
Having focused on detecting chronic diseases for over 15 years, Semler adopted Bitcoin as its main Treasury protection asset last May.
This move led only to the second US listed company after Michael Saylor's strategy (MSTR) to adopt Bitcoin as a reserve asset for the Treasury.
Since then, the company has acquired around 4,636 BTC for $430 million, with an average cost base per bitcoin of $92,753, the report said.
Palmer said the stock rose 178% in the six and a half months after Bitcoin's standard announcement, peaking at $81.56 in December 2024. However, analysts claimed that Semler is trading at a sudden discount compared to its Bitcoin trove of peers.
Analysts have a multiple of Net Asset Value (MNAV) (MNAV) at 1.25.
The benchmark believes this gap could close. Management recently appointed Joe Barnett as director of Bitcoin Strategy, outlining 10,000 BTC by the end of 2025, 42,000 by the end of 2026 and 105,000 by the end of 2027.
The report notes that resolving legal and regulatory headwinds from Semler's legacy healthcare business, including uncertainties about Department of Justice (DOJ) investigations and Medicare reimbursement, could help raise that assessment further.
The benchmark's $101 price target is based on a total rating of the forces, which assumes that Bitcoin will reach $225,000 by 2026.
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