Jefferies downgraded AdaptHealth to Hold from Buy with a price target of $8, down from $14.50. The firm is reducing its FY24 estimates to reflect the 12/31/23 expiration of the 75/25 rule for non-comp bid Durable Medical Equipment, which it estimates reduces AdaptHealth’s FY24 revenue by $30M-$35M and EBITDA by about $7M. AdaptHealth also faces overhangs that need to be resolved before the stock sees multiple recovery, including concerns about GLP impact on CPAP demand, a lack of a permanent CEO, and emerging scrutiny of CGM reimbursement, the analyst tells investors.
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