Analyst Charles Rhyee of TD Cowen maintained a Hold rating on DarioHealth, reducing the price target to $0.60.
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Charles Rhyee’s rating is based on several key considerations surrounding DarioHealth’s recent performance and future outlook. The company’s second-quarter financial results fell short of expectations, with both revenue and EBITDA missing the estimates. This shortfall was largely attributed to a reduction in scale with a significant health plan partner and delays in recognizing revenue from new deals. These factors have led DarioHealth to adjust its cash flow breakeven timeline from the end of 2025 to late 2026 or early 2027.
Despite these challenges, Charles Rhyee acknowledges potential growth opportunities for DarioHealth in the coming years. The company has a promising pipeline, including new major health plan clients and a recent entry into the sleep apnea market. Management’s efforts to reduce operational expenses and the anticipated impact of delayed deals starting in 2026 provide a path to recovery. However, given the current uncertainties and the revised financial outlook, a Hold rating is deemed appropriate at this time.
Rhyee covers the Healthcare sector, focusing on stocks such as CVS Health, Fortrea Holdings Inc., and Charles River Labs. According to TipRanks, Rhyee has an average return of 0.7% and a 45.85% success rate on recommended stocks.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $0.50 price target.