Leerink Partners Downgrades Diplomat Pharmacy (DPLO) to Market Perform

November 3, 2016 6:59 AM EDT
Get Alerts DPLO Hot Sheet
Price: $13.92 +1.24%

Rating Summary:
    6 Buy, 7 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Leerink Partners downgraded Diplomat Pharmacy (NYSE: DPLO) from Outperform to Market Perform with a price target of $18.00 (from $35.00).

Analyst David Larsen commented, "Yesterday afternoon DPLO reduced its outlook for 2016 and provided a preliminary outlook for 2017 that was well below expectations. As a result we are reducing our forward estimates and we downgrade the stock to Market Perform. DPLO is facing significant headwinds from "Direct and Indirect Remuneration" (DIR) fees from the PBMs that had not been previously expected, Hepatitis C volumes, and while price inflation was ~7% in the quarter, we believe that there is risk to negative revisions to inflation assumptions in 2017. We downgrade the stock to Market Perform and we reduce our PT to $18 (from $35)."

For an analyst ratings summary and ratings history on Diplomat Pharmacy click here. For more ratings news on Diplomat Pharmacy click here.

Shares of Diplomat Pharmacy closed at $22.38 yesterday.

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