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Investing.com - TD Cowen raised its price target on DarioHealth Corp. (NASDAQ:DRIO) to $11.00 from $0.60 while maintaining a Hold rating on the stock. According to InvestingPro data, the stock appears undervalued based on Fair Value calculations, despite falling 20.6% in the past week to $9.92. The RSI indicator suggests the stock is currently in oversold territory.
The significant price target increase comes despite revenue weakness in the third quarter, with the company reporting $5 million in revenue versus the consensus estimate of $5.7 million. TD Cowen attributed the miss to ongoing headwinds from losing a large health plan customer at the beginning of the year. DarioHealth’s trailing twelve-month revenue stands at $27.15 million, with analysts anticipating a 12% sales decline for the current fiscal year.
DarioHealth has signed 45 new clients year-to-date, exceeding its target of 40, and expects $12.4 million in new business for 2026. The company indicated that 90% of this new business is expected to launch in the first quarter of 2026, including a full UnitedHealth digital marketplace rollout. This pipeline expansion is critical as the company is quickly burning through cash, with negative $26.92 million in levered free cash flow over the last twelve months.
The digital health company plans to continue reducing operating expenses by 10%-15% and has reiterated its goal of reaching cash flow breakeven by late 2026 or early 2027.
TD Cowen believes revenue growth is possible in 2026 as DarioHealth benefits from its strong pipeline and laps the 2025 health plan loss that has impacted current performance.
In other recent news, DarioHealth Corp reported disappointing third-quarter 2025 financial results. The company posted earnings per share of -2.96, significantly missing the forecasted -0.19. Revenue also fell short, coming in at $5 million compared to the expected $8.54 million. Following these results, Stifel adjusted its price target for DarioHealth, lowering it from $25 to $16, while maintaining a Buy rating on the stock. The adjustment reflects the company’s performance, which was impacted by a transition in scope with a large national health plan and a shift away from non-recurring revenue. These developments have been noteworthy for investors assessing the company’s financial health and future prospects.
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