Ontrak Inc: Cowen downgrades on limited visibility with loss of largest customer

Ontrak

02/03/2021 12:51

** Brokerage Cowen downgrades telehealth co  OTRK.O  to
"market perform" from "outperform" due to lack of visibility
with loss of its largest customer
    ** Co on Monday said its largest customer terminated their
contract with OTRK  urn:newsml:reuters.com:*:nBw4G5gWra
    ** Cowen said it continues to see value in serving the care
avoidant population; sees near-term risk to revised 2021 rev
guide of $100 mln
    ** Adds that it has less confidence in implied 2022 rev
guide of $200 mln, given limited visibility
    ** Despite the potential risk, we continue to believe that
OTRK provides a valuable service in treating the underserved
care avoidant patient population, says brokerage
    ** Brokerage says OTRK is also well positioned to capitalize
on the behavioral health crisis, which has been exacerbated by
the COVID-19 pandemic
    ** Cowen also cut PT to $35 from $75; median PT is $75-
Refinitiv IBES
    ** Current avg rating on stock is "buy"
    ** Stock up 93.4% in last 12 months

 (Reporting by Trisha Roy in Bengaluru)
 ((Trisha.Roy@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6182 3635;))