INNV - InnovAge cut to Equal Weight at Barclays on 'uncertainty' over Colorado sanctions guidance pull

Barclays analyst Sarah James downgraded InnovAge (NASDAQ:INNV) to Equal Weight from Overweight with a price target (PT) of $6.50, down from $22, after the company announced a sanction in its largest market, Colorado. Shares continue the downward trend, down 5% premarket after losing around 36% during last Thursday's regular intraday session. The PT of $6.50 still implies a premium of ~22.4% to the last close of $5.31. Last week, the Centers for Medicare and Medicaid Services (CMS) said it is freezing its enrollment in Colorado until deficiencies are remedied, following which INNV withdrew its guidance for fiscal 2022. The analyst cites the uncertainty around the timing of a resolution of the sanctions and return to a normalized growth rate for the downgrade. Her estimates assume that the enrollment freeze resolve by year end 2022, but that there is no catch-up of lives lost. In a research note, James warns of risk to

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InnovAge cut to Equal Weight at Barclays on 'uncertainty' over Colorado sanctions, guidance pull