DarioHealth’s Balanced Outlook: Promising Growth Amidst Uncertainties Justifies Hold Rating

Charles Rhyee, an analyst from TD Cowen, maintained the Hold rating on DarioHealth (DRIO – Research Report). The associated price target remains the same with $1.00.

Charles Rhyee has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing uncertainties for DarioHealth. The company’s fourth-quarter revenue exceeded expectations, largely driven by its business-to-business segment, which shows promise for future growth. Management anticipates significant revenue contributions from new client wins in the health plan and insurance sectors, expected to materialize in the latter half of the year.
However, despite these promising developments, there are still uncertainties that warrant a cautious approach. While management is optimistic about achieving cash flow breakeven by the end of 2025 and reducing operational expenses, these goals are yet to be realized. Additionally, the company’s strategic partnerships and new offerings, such as the GLP-1 capabilities, are still in the early stages of adoption. These factors contribute to a balanced outlook, justifying the Hold rating as investors await more concrete results from these initiatives.

Rhyee covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, CVS Health, and IQVIA Holdings. According to TipRanks, Rhyee has an average return of 0.5% and a 46.86% success rate on recommended stocks.