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- Citi lowered its rating on Cano Health (NYSE:CANO) to Neutral from Buy on Friday after the value-based primary care provider, issuing its Q2 2023 results, warned about its ability to operate as a going-concern business in the near term.
- Citi pointed to other disclosures that came with the company’s earnings update, including its decision to look for a potential sale of the business and lay off staff, which, according to analyst Steve Kessler, have only heightened the risk of insolvency.
- Citing insolvency concerns and steps taken to improve the company’s operations, Kessler argues that it is difficult for him to be bullish on Cano (CANO) given unfavorable trends in recent quarters and a challenging M&A outlook expected for 2024.
- However, slashing his price target on the stock to $0.80 from $4.00 to reflect revised estimates, the analyst highlights Cano’s (CANO) value in catering to underserved people with its focus on value-based care.
More on Cano Health
- Cano Health: Bankruptcy Likely After Dismal Q2 Results And Debt Covenant Violations
- Cano Health, Inc. (CANO) Q2 2023 Earnings Call Transcript
- Cano Health: CEO Departure Could Be Constructive, New Skipper More So
- Cano Health: Key Shareholder Meeting Looms, Stock Undervalued But Volatile
- Seeking Alpha’s Quant Rating on Cano Health