Cano Health downgraded to Neutral from Buy at Citi

Citi analyst Jason Cassorla downgraded Cano Health to Neutral from Buy with a price target of 80c, down from $4. The company withdrew 2023 guidance and amended its credit agreement after tripping covenants to ensure some level of compliance as it divests assets, reduces its workforce, and potentially looks to sell itself within its strategic review, the analyst tells investors in a research note. The analyst firm says Cano’s “insolvency risk is only intensified amid this backdrop.” Citi sees inherent value in the company but finds it difficult to maintain a more positive stance at this juncture.