Chemed downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital downgraded Chemed (CHE) to Sector Perform from Outperform with a price target of $422, down from $572. The firm cites near and longer-term Roto-Rooter margin uncertainty for the downgrade, but it remains “encouraged” by Vitas’ momentum, particularly within Florida. Headwinds impacting Roto-Rooter may begin to “mask value” in the Vitas unit as the hospice segment rebalances mix over the course of the year, potentially heightening investor interest in a separation transaction, the analyst tells investors in a research note.