Canaccord Genuity reiterates a Hold rating on Castlight Health Inc. (NYSE: CSLT), and raised the price target to $10.00 (from $9.00), following an analyst and investor summit. Analyst Richard Davis believes that management is making the right decisions to grow the business, and Canaccord Genuity is warming up on its current HOLD rating.
Davis commented, "On Tuesday Castlight held its inaugural analyst and investor summit in San Francisco. We came away from the day incrementally more positive on the story given the combination of several recent discrete, yet favorable data points – healthy renewal/expansion activity with some of the firm’s largest customers, TAM-expanding product introductions, and the much anticipated data sharing agreement with United Healthcare. The first point is important validation of customer satisfaction and upsell, and the latter two should set the firm up for an improved near- and intermediate-term bookings trajectory and what we expect to be impressive 50%+ revenue growth in C2016. While there are still a few issues that give us pause with CSLT the stock – two consecutive quarters of mediocre billings, no increase in revenue guidance off of Q1/15 results, several years from cash flow profitability – we do believe that management is making the right decisions to grow the business, and we are warming up on our current HOLD rating."
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Shares of Castlight Health Inc. closed at $9.70 yesterday.
