Privia Health downgraded to Neutral at BofA on slow ramp of VBC

As previously reported, BofA downgraded Privia Health to Neutral from Buy with a price target of $21, down from $27, to reflect a delay in the upside from value based care, or VBC. While the firm’s new forecasts still support the company growing EBITDA around 20%, this falls short of the company’s IPO expectations of 30%-40% and is below consensus, particularly in 2025 and beyond, the analyst noted. Privia is only set to grow adjusted EBITDA 20% in 2023 due to what the firm sees as a slower than expected ramp in core value based care earnings, which has only made modest progress, the analyst added.