MultiPlan initiated with a Neutral at Piper Sandler

Piper Sandler initiated coverage of MultiPlan with a Neutral rating and $2 price target. MultiPlan is a leading vendor of healthcare cost management solutions that bring affordability, efficiency, and fairness to the U.S. healthcare system, the analyst tells investors in a research note. While encouraged by the company’s efforts to expand and diversify its product portfolio, the firm expects headline risk, leverage and pending lawsuits to constrain MultiPlan’s stock price performance over the next 12 months. Piper says MultiPlan is facing multiple lawsuits from health systems that allege the company has engaged in “price-fixing” practices and collusion in efforts to underpay providers.