BNFT - Benefitfocus downgraded on revenue outlook; stock falls

Benefitfocus (BNFT) slides 4.8% after Raymond James analyst Alexander Sklar downgrades the stock to Market Perform on the expectation that the company's initial 2021 revenue outlook will disappoint.The analyst doesn't see the consensus estimate for $285.3M as property reflecting incremental growth drivers for 2021.Sklar considers his Street low 2021 revenue estimate of $271M as "much more realistic.""We're cognizant that shares don't look expensive at <3x our 2021 revenue estimate and 18x 2021E EBITDA, but at ~$14 are still well above our prior $12 price target," he writes.The downgrade doesn't reflect on recently appointed CEO Steve Swad, Sklar said. Rather he expects Swad will drive improved margin/cash flow levels over the next several years.Quant rating on BNFT is Bearish, with grades in profitability and momentum weighting on the rating.BNFT shares slumped last August after announcing CEO transition.Overall, analysts have been revising down their estimates for BNFT's revenue (chart below).

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Benefitfocus downgraded on revenue outlook; stock falls