Babylon Holdings downgraded to Neutral from Buy at BTIG

BTIG analyst David Larsen downgraded Babylon Holdings to Neutral from Buy without a price target. The analyst has concerns around the company’s timing to profitability, the "lean" gross margin of the business model, and its ability to drive near-term cash flow. Recent events in the broader market may make the funding environment and the Independent Physician Association unit sales process more challenging, the analyst tells investors in a research note. Babylon’s gross margins are low when compared to peers, and it can take months, or even years, to drive enough cost-savings to deliver substantial EBITDA, the firm contends.