Ironwood price target lowered to $10 from $14 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Ironwood to $10 from $14 and keeps a Buy rating on the shares. Ironwood reported a challenging quarter, with revenue missing the Street’s estimate, and the firm says the issue is Medicaid mix similar to Q1, but this mix is now expected to remain through 2024, leading to a meaningful cut to guidance, the analyst tells investors in a research note. The firm says the stock further sold off around concerns around leverage covenants associated with Ironwood’s debt. While the quarter and guidance cuts are very complex and noisy, Craig-Hallum says the stock is simply too cheap here.