Citi downgrades Agiliti to 'neutral' on weakness in rental business

Agiliti

15/08/2023 11:05

** Brokerage Citi downgrades medical equipment supplier
Agiliti Inc  AGTI.N  to a "neutral" rating from "buy" and trims
PT to $13 from $20
    ** Agiliti has flagged a "contraction" in its rental
business in Q2 due to customers purchasing medical equipment    
    ** AGTI has also highlighted higher servicing costs in
implementing large deals resulting in a longer ramp to
profitability
    ** Co expects trend to continue and to impact FY results  
    ** "Leverage also remains high and limits capital deployment
flexibility amid this near-term backdrop," Citi analyst Jason
Cassorla writes in the note
    ** 3 of 7 brokerages rate the stock "buy" or higher, and 4
rate "hold"; median PT is $19
    ** Up to last close, stock down 28.2% YTD  

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com;))