Deutsche Bank analyst George Hill downgraded 1Life Healthcare to Hold from Buy with a price target of $12, up from $11. The shares are up 32% over the last several weeks on reported news of the company receiving takeover bids, Hill tells investors in a research note. The analyst, however, has a “hard time justifying” a share price above the $12-$13 range, implying 10% upside to the current share price. He sees challenges to 1Life’s core business growth resulting from the slowing economy. Additionally, he’s meaningfully below consensus on out-year earnings estimates, meaning he expects negative revisions. Further, Hill suspects that if a buyout were to occur, much of the premium has already been priced into the stock.
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