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Cano Health could be worth $14 per share in buyout, says Citi

Cano Health (CANO) shares were up over 30% yesterday on reports suggesting Humana (HUM), CVS Health (CVS) and other unnamed entities are looking to make a bid for the company, which could potentially come to fruition in the coming weeks, Citi analyst Jason Cassorla tells investors in a research note. The analyst believes there is strategic value in owning Cano given its focus on the Medicare Advantage population. He has not factored a takeout premium into Citi’s price target, but notes that peer deals and current comps suggest a takeout multiple in the two-times revenue zone, or a buyout price of $14 per share. Cassorla keeps a Buy rating on Cano with a $7 price target.

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