Semler Scientific Gets Buy Rating From Benchmark, $101 Price Target on Bitcoin Treasury Pivot
Semler Scientific (SMLR), a company that dramatically shifted its focus from medical diagnostics to Bitcoin accumulation, has garnered attention from Benchmark analyst Mark Palmer, who initiated coverage with a buy rating and a $101 price target. This bullish outlook stems from Semler’s strategic pivot, making it only the second U.S.-listed firm after MicroStrategy to adopt Bitcoin as a primary treasury reserve asset.
Since May 2024, Semler has amassed approximately 4,636 BTC at an average cost of $92,753 per coin, totaling over $430 million. This move triggered a significant stock rally, with a 178% increase in the six and a half months following the announcement, peaking at $81.56 in December 2024. Despite this surge, Palmer argues that Semler’s valuation remains undervalued compared to its peers in the Bitcoin treasury space.
Currently, Semler’s multiple of net asset value (mNAV) stands at 1.25, significantly lower than Metaplanet (3350) at 4.29 and Blockchain Group (ALTBG) at 6.45. Benchmark believes this discrepancy presents a significant opportunity for growth, anticipating a convergence towards the higher multiples observed in its competitors. This optimistic forecast is reinforced by Semler’s ambitious Bitcoin accumulation targets: 10,000 BTC by the end of 2025, 42,000 by the end of 2026, and 105,000 by the end of 2027.
The company’s recent appointment of Joe Burnett as Director of Bitcoin Strategy further underscores its commitment to this new trajectory. Benchmark’s $101 price target is predicated on a sum-of-the-parts valuation, incorporating an anticipated Bitcoin price of $225,000 by the end of 2026. The report also acknowledges potential catalysts for further valuation uplift, such as the resolution of legal and regulatory challenges related to Semler’s legacy healthcare business, including a Department of Justice investigation and Medicare reimbursement uncertainties. Successfully navigating these hurdles could unlock additional value for the company. The recent report also notes that Semler is currently trading at a premium to its bitcoin holdings for the first time in three weeks.
