Here is your Pro Recap of the biggest analyst cuts you may have missed since Friday: downgrades at CVS Health, Medical Properties Trust, Napco Security Technologies, and Insulet.
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CVS Health downgraded to Hold
Edward Jones downgraded CVS Health (NYSE:CVS) to Hold from Buy following reports that Blue Shield of California will no longer be using CVS Health's Caremark, its current pharmacy-benefit manager. As a result, shares plunged more than 8% on Thursday.
According to CVS, the financial impact associated with the partial termination of the Blue Shield of California contract is not expected to have an impact on its previously issued 2023 guidance and is expected to have an immaterial impact on our longer-term outlook.
Although is just one contract, Edward Jones is of the opinion that it introduces an element of uncertainty for the PBM sector. Nevertheless, the firm holds the view that the integration of CVS's drugstore business, Aetna health insurance, specialized drug offerings, and expansion of patient care offerings should help CVS become a one-stop shop for healthcare services.
Medical Properties Trust cut at JPMorgan
Medical Properties Trust (NYSE:MPW) shares fell more than 4% premarket today after JPMorgan downgraded the company to Underweight from Neutral and cut its price target to $7.00 from $9.00, as reported in real time on InvestingPro.
The bank explains that despite the shares experiencing a significant decline year-to-date and the company's management rebutting a Friday WSJ story about the MPW/Prospect deal that initially caused a 15% drop in the stock's value, they are shifting their rating to Underweight. The rationale behind the rating change is a blend of both market-related and fundamental considerations.
Two more downgrades
William Blair downgraded Napco Security Technologies (NASDAQ:NSSC) to Market Perform from Outperform.
Shares plunged more than 34% premarket today after the company said it would revise its financial statements over the first three quarters of its 2023 fiscal year as it had identified certain errors related to its calculation of cost of goods sold and inventory.
Baird downgraded Insulet (NASDAQ:PODD) to Neutral from Outperform and cut its price target to $219.00 from $320.00.
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