Broker Jefferies has downgraded Spire Healthcare after the private hospital operator warned on the full-year but gave an upbeat outlook.
Shares in Spire rose 2.4p to 307.4p on Monday following results last Thursday in which Spire said annual revenue would be lower than expected.
The group blamed a worse-than-expected 39% fall in NHS local contract business in the four months to October 31.
But Jefferies downgraded the stock to 'hold' from 'buy'. The broker said: "The second profit warning in three months highlights the increasing uncertainty Spire faces as the NHS adjusts to the current funding squeeze.
"We cut our NHS forecasts by -9% as local contract work faces heavy volume and pricing pressure, which impacts 2016 (pre-tax earnings before interest) by -8%."
Spire said it now expected full-year revenues to rise by between 3% and 3.7%, or up to £888mln, versus previous guidance of 4% to 6%, or up to £907million.
The group also said revenue in its private medical insurance (PMI) business fell slightly as larger insurers grabbed an increasing share of the corporate PMI market.
But it said its underlying self-pay business had continued to increase volume and revenue strongly.
It also said revenues from Choose & Book within its NHS business, which allow NHS patients to choose a private hospital, were still rising strongly.
For October 2015, monthly referrals into Spire under Choose & Book hit a record, with orthopaedics making up 45%.
It expects group annual pre-tax earnings before interest, depreciation and amortisation (EBITDA) to be between £159mln and £162mln. Analysts at Jefferies had forecast £159.7mln.
Chief executive Rob Roger said: "Despite challenging short term conditions, underlying market dynamics remain highly favourable for Spire, with overall UK healthcare demand outstripping supply, necessitating increased NHS outsourcing over time to the independent sector.
"We are also working closely with insurers to develop ways to grow the PMI market."