Quipt Home Medical downgraded to Hold from Buy at Canaccord (yesterday)

Canaccord analyst Richard Close downgraded yesterday afternoon Quipt Home Medical (QIPT) to Hold from Buy with a price target of $1.70, down from $4. Quipt is “currently enduring several revenue headwinds that have stunted organic growth” over the last year, the analyst tells investors in a research note. The firm says that following fiscal Q2 results that delivered a 6% revenue decline, the headwinds look to be continuing longer than originally expected. The loss of Humana HMO clients with the initial transition to capitated agreements with competitors looks to have “increasingly bled” over to PPO members as the capitated contract was again cited in the revenue performance, contends Canaccord.