Bright Health earns BofA double downgrade following top and bottom line misses

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.