LVGO - Why Livongo Health Shares Jumped Today
Shares of Livongo Health (NASDAQ: LVGO) jumped 6.4% higher on Monday, after KeyBanc analyst Donald Hooker raised his price target on the stock to $85 from $52. Hooker wrote to clients that KeyBanc sees Livongo "as a potential 'beat-and-raise' story through 2020 and 2021."
Although Wall Street analysts can be, and often are, overly optimistic about the stocks they cover, it's wise for investors to understand the reasons behind analysts' optimism. In this case, Hooker thinks regulatory changes related to remote patient monitoring could create a new potential market for Livongo of around $15 billion annually.
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