Credit Suisse says future of digital health firms tough to predict, cuts PTs

Accolade

02/09/2021 11:26

** Credit Suisse says the future of digital health companies
is difficult to predict as pandemic-related uncertainties
persist and expectations about normalization keep getting pushed
back 
    ** Brokerage says there is additional volatility in the
sector due to lack of performance benchmarks as many companies
have gone public recently, with management teams still new to
the public markets
    ** Continue to remain in a transition phase, where there are
more questions than answers - brokerage
    ** Brokerage's top picks are Teladoc Health Inc  TDOC.N  and
Accolade Inc  ACCD.O 
    ** Brokerage says TDOC's 2022 revenue outlook would be
roughly in-line with Street expectations, but cautions of a
slowdown in year-over-year membership and utilization trends,
cuts PT by 21% to $208
    ** Also slashes PTs for other cos, including ACCD, Cano
Health Inc  CANO.N , Privia Health Group  PRVA.O , SOC Telemed
 TLMD.O  and Hims & Hers Health Inc  HIMS.N 
    ** Year-to-date, TDOC, TLMD and HIMS had fallen between 27%
and 64%, CANO up 1.9%, while ACCD had risen 10.9% up to the last
close

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))