Piper Sandler downgrades Accolade ahead of shareholder vote

Published 05/03/2025, 18:34
© Reuters.

Investing.com -- Piper Sandler downgraded Accolade Inc (NASDAQ:ACCD) to Neutral from Overweight and cut its price target to $7.03 per share, aligning with the proposed acquisition price in the company’s pending sale to Transcarent.

Accolade agreed to be acquired by Transcarent, a healthcare navigation firm, for $7.03 per share in cash, a 110% premium to its Jan. 7 closing price.

Shareholders are set to vote on the deal at a special meeting on March 27, with closing expected in the second quarter, pending approval.

“We believe the merger terms are generally favorable and fall in line with several comparable transactions,” analyst at Piper Sandler said.

Piper Sandler noted that Accolade’s fiscal third-quarter 2025 revenue of $105.1 million slightly missed expectations, while adjusted EBITDA of negative $3.8 million came in marginally ahead. The firm also flagged downside risks to consensus estimates for fiscal years 2026-2028, based on management projections.

Despite viewing the sale process as competitive and the terms as generally favorable, Piper Sandler sees limited upside for the stock at this stage.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.