Bright Health earns BofA double downgrade following top and bottom line misses
Mar. 02, 2022 12:38 PM ETBright Health Group, Inc. (BHG)By: Jonathan Block, SA News Editor4 Comments
- BofA Securities has issued a double downgrade of Bright Health Group (BHG -10.1%) following the company's Q4 2021 results that missed on the top and bottom lines.
- The firm has downgraded the stock to underperform from buy and lowered its price target to $2.50 from $6 (~20% downside based on Tuesday's close).
- "While the company is poised to grow revenues 72% y/y in 2022 the much higher costs lower visibility into the core trajectory and raise the likelihood of another dilutive capital raise," said analyst Kevin Fischbeck.
- He added he is expecting widening losses based on lack of cost visibility.
- Read why Seeking Alpha contributor Busted IPO Forum considers Bright Health (BHG -10.1%) a hold.