TD Cowen downgrades DarioHealth on ‘challenging’ demand environment

TD Cowen downgraded DarioHealth (DRIO) to Hold from Buy with a price target of $1, down from $2. The “challenging” digital health demand environment, as well as potentially limited investment by the company amid a focus on cost management, will pressure its revenue growth trajectory and likely prolongs a path to breakeven, the analyst tells investors in a research note. The firm thinks there may be limited visibility on DarioHealth’s business-to-business-to-consumer channel, which it notes has seen “muted” growth in 2024, and its strategic partnerships, which is on track for zero revenue in 2024.