Cano Health Inc’s cash flow challenges appear "daunting" as the primary care provider’s recent quarterly losses swelled, according to UBS analysts.
In an update to clients, they downgraded Cano stock from ‘Neutral’ to a ‘Sell’, while slashing its price target to $3.75 per share from $12 previously, as the analysts believe elevated third-party medical expenses will have a sustained negative effect on the company's already challenged liquidity position.
They also noted Cano's recent third-quarter financial results continue to disappoint, with the company’s cash flow and liquidity situation still deteriorating.
Analysts at UBS added that Cano’s liquidity as of November 9, 2023, was $53 million of cash and equivalents with no capacity remaining on its revolving credit line.
During its past two quarterly reports, Cano stated that "there is substantial doubt about the company's ability to continue as a going concern within one year," and it continues to explore its strategic options.
Shares of Cano Health slipped 6% to $7.68 in late-day trading on Friday and have plunged 93% year to date.
Contact Sean at sean@proactiveinvestors.com