Agiliti downgraded to Equal Weight at Morgan Stanley ahead of transition year

As previously reported, Morgan Stanley analyst Drew Ranieri downgraded Agiliti to Equal Weight from Overweight with an $18 price target. He views FY23 as a "transition year" given that the company will lap prior pandemic-driven revenue and profitability benefits in Q1 and the company’s customer base will be shifting from pandemic-business to long-term contracts, Ranieri tells investors. He has lowered his revenue estimate for 2023 and believes that throughout the year investors will get a better sense of "true go-forward underlying business fundamentals," the analyst added.