Piper Sandler analysts downgraded shares of CareMax (CMAX) to Neutral from Overweight in a note to clients Friday, lowering the stock price target to $2 per share.
The analysts told investors that CMAX is taking a "justifiably cautious approach to growth in 2024."
However, they added that after "what feels like the umpteenth strategic shift," the Wall Street firm "cannot continue to recommend the stock."
"This downgrade occurs at an all-time low, but we think LT targets are unachievable and believe margins are constrained to LSD," the analysts said. "We question the assumptions underlying 2023 VBC revenue; and believe flex cards, v28, and Part D redesign could pressure MCR through 2026."
The analysts also stated that, among other things, their firm "cannot get comfortable with the implied ramp in Government VBC Revenue" and believes "the aggressive accruals put CMAX at risk of negative PYD in future periods related to 2023."