Avanos downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc analyst Matthew Mishan downgraded Avanos to Sector Weight from Overweight without a price target. The analyst sees an uncertain near-term financial outlook and says the catalysts leading up to the company’s investor day in mid-June have now passed. While encouraged with the long-term changes Avanos is making to the business, the firm believes this has already started to lower organic numbers for 2023 and notes Avanos has yet to disclose potential dilution from a larger divestiture.