Fly News Breaks for October 18, 2019
Oct 18, 2019 | 12:48 EDT
Piper Jaffray analyst Sean Wieland attributes the selloff today in shares of Tabula Rasa HealthCare to statements made at a meeting by a large, multi-state provider organization and client of the company's. At the meeting, it was stated that the provider organization had implemented Tabula Rasa, but it didn't work out because the return on investment was not compelling, Wieland tells investors in a research note. After speaking to management, the analyst learned that the pilot termination was mutual decision because it was challenging to manage the dispensing. The provider organization remains a client of Tabula Rasa for its risk adjustment platform, and Tabula Rasa has an updated proposal out to the organization for its software-as-a-service platform with no medication fulfillment offering at a price point and service offering more in line with the client's needs, adds Wieland. Furthermore, Tabula Rasa said its relationship with the provider organization remains strong, he adds. As such, the analyst attributes today's selloff in shares of Tabula Rasa to a "misunderstanding." Wieland sees a "very compelling entry point in the stock" and reiterates an Overweight rating on the name with a $78 price target. Tabula Rasa in midday trading is down 5.5% to $48.30.
News For TRHC From the Last 2 Days
There are no results for your query TRHC