DarioHealth price target lowered to $1.50 from $2 at Stifel

Stifel lowered the firm’s price target on DarioHealth (DRIO) to $1.50 from $2 and keeps a Buy rating on the shares following a below Q1, reflecting transition of scope with large national health plan and modest impact from downstream tariff-related delays within their partner channel. The firm is lowering 2025 revenue estimate to reflect this dynamic. However, significant contract awards in the last several months should begin ramping in the second half of 2025 and into 2026. Management is still targeting free cash flow breakeven in Q1 2026. While possible, Stifel’s estimates are less aggressive. It continues to estimate the company has sufficient cash/borrowing capacity to fund operations through achieving breakeven. While there are still several moving pieces impacting near-term growth, the firm is encouraged by management’s ability to lower expenses and continues to sign meaningful new customer relationships.