SMFR - Sema4 downgraded at Jefferies citing Q2 miss and guidance cut

Jefferies downgraded Sema4 Holdings ( NASDAQ: SMFR ) to Hold from Buy on Tuesday, noting a lower-than-expected revenue the health information company recorded for Q2 2022 with a cut to its full-year outlook. The firm also lowered the SMFR price target to $2 from $4.

The analysts led by Brandon Couillard point out that excluding a ~$30M prior period revenue adjustment, Q2 2022 revenue missed estimates by $3M amid the impact on average selling prices of Sema4's ( SMFR ) core reproductive health business.

Jefferies notes that despite an upgrade to its volume outlook, the company has lowered its full-year revenue outlook to reflect the prior period's revenue adjustment and a more conservative view on its reproductive health for ASPs and volumes.

In addition, the team points out that the company's founder Eric Schadt is resigning from his roles as President and Chief R&D Officer. Citing his departure, the analysts raise concerns over the company's ability to advance biopharma & healthcare system partnerships which they view as two of SMFR's key growth divers.

Wall Street has remained bullish on Sema4 ( SMFR ) stock, with an average rating of Strong Buy from analysts while Seeking Alpha Author ratings indicated a Buy rating. However, Seeking Alpha's quant system, which consistently beats the market , rated SMFR as a Strong Sell.

For further details see: