Wells Fargo starts coverage on Accolade with 'underweight', shares down

Accolade

11/04/2022 17:45

** Tech-based healthcare service provider's  ACCD.O  shares
fall ~8.3% to $14.13 in afternoon trade 
    ** Wells Fargo starts coverage on ACCD with "underweight"
rating; sets PT at $9, implying a downside of ~41.6% to the
stock's last close  
    ** "Revenue growth acceleration above 25% within Accolade's
core business is unlikely given strong reliance on the human
component to deliver services" - brokerage
    ** Adds ACCD's pace of margin expansion remains a concern 
    ** Sees pressure on margins from higher wage, incremental
M&A and slowdown in sales efficiency  
    ** 14 of 15 brokerages rate the stock "buy" or higher, one
"hold"; their median PT is $34 - Refinitiv data
    ** Including session loss, shares down ~48% YTD 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com;))