SMLR - Semler Scientific cut to neutral at B Riley on increased near-term risks
- B Riley has downgraded Semler Scientific ( NASDAQ: SMLR ) to neutral from buy due to increased near-term risks associated with Semler's ( SMLR ) variable-fee revenue as a result of CVS' ( CVS ) acquisition of Signify Health, the company's second-largest customer.
- Also contributing to the downgrade is a reassessment of the factors impacting deployment of the QuantaFlo extension in 2023.
- The firm cut its price target to $45 from $60 (~5% upside based on Tuesday's close).
- Analyst Marc Wiesenberger said that while shares have risen ~30% since early August, near-term upside is unlikely until more clarity emerges and growth returns to a sustained, upward trajectory.
- "We remain confident in Semler's long-term opportunity to become the standard of care for [peripheral arterial disease] testing given its cost, ease, and efficiency, however, a number of industry dynamics are likely to increase near-term volatility in the business as well as in ( SMLR ) shares," he noted.
- Semler Scientific ( SMLR ) is down 35% in Wednesday afternoon trading after slashing its fiscal 2022 financial outlook .
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Semler Scientific cut to neutral at B Riley on increased near-term risks