Fathom price target lowered to $1.50 from $3.75 at Roth MKM

Roth MKM analyst Darren Aftahi lowered the firm’s price target on Fathom (FTHM) to $1.50 from $3.75 and keeps a Buy rating on the shares after its Q4 results. The company aims to return to adjusted EBITDA profitability by Q2, relying on agent growth and scaling ancillary services, which, while expanding, remain a small revenue contributor, but while new programs may aid adoption, that is still a large unknown considering industry challenges, the analyst tells investors in a research note. Fathom remains in a transition phase working toward sustained growth and back to profitability, the firm adds.