Fly News Breaks for January 10, 2020
Jan 10, 2020 | 08:44 EDT
Guggenheim analyst Glen Santangelo believes Change Healthcare (CHNG) shares are only up 20% since the company's IPO due to overhangs that included a relatively new management team to the public markets, an FY20 business transition and potential selling pressure from the eventual exit of McKesson (MCK). However, noting that McKesson recently announced that it could complete its exit as early as March, he recommends buying on any weakness throughout 1Q as Santangelo believes the exit removes a key overhang. The analyst, who also believes the other overhangs will have a less meaningful impact going forward and expects investor expectations to quickly shift to the "achievable" consensus expectations for FY20 and FY21, raised his price target on Change Healthcare shares to $20 and keeps a Buy rating on the stock.
News For CHNG;MCK From the Last 2 Days