Barclays analyst Steven Valiquette downgraded Diplomat Pharmacy to Equal Weight from Overweight with a price target of $3, down from $7. Diplomat's strategic review is ongoing, which could lead to a sale of the entire company, or simultaneous asset sales that could unlock value, Valiquette tells investors in a research note. The analyst, however, says the company still face challenges when both competing against and negotiating with larger players in the pharmaceutical services sector. He reduced his projections for another customer loss in the core specialty pharmacy given Diplomat's inability to reach adequate reimbursement terms with a large payor.