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On Monday, RBC Capital adjusted its outlook on shares of NeueHealth (NYSE:NEUE), reducing the price target to $7.00 from the previous $8.00. The stock currently trades at $5.60, with a market capitalization of $46.22 million. Despite this change, the firm has chosen to keep a Sector Perform rating on the company's stock.
The revision comes as a follow-up to an earlier brief from November 7, where RBC Capital reviewed its projections based on the company's third-quarter results. While NeueHealth had reported strong performance for the third quarter, exceeding expectations, InvestingPro data shows revenue declined 9.01% year-over-year, with a concerning current ratio of 0.68. The management team confirmed that their guidance remains unchanged.
RBC Capital's decision to lower the price target reflects an update to their valuation model for the upcoming year. This adjustment takes into account the solid third-quarter results while also positioning the valuation in line with the forthcoming fiscal period.
The maintained Sector Perform rating suggests that RBC Capital views NeueHealth's stock as likely to perform in line with the expectations for the sector. This indicates a neutral stance on the stock's expected performance relative to other companies in the same industry.
Investors and market watchers can consider this updated price target and rating as they evaluate NeueHealth's stock for their portfolios. The new price target of $7.00 sets a revised benchmark for the company's market valuation as per RBC Capital's analysis. According to InvestingPro analysis, the stock appears undervalued at current levels, with 8 additional key insights available to subscribers.
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