UPDATE: Oppenheimer Starts Healthways (HWAY) at Perform

(Updated - June 18, 2015 9:07 AM EDT)

Oppenheimer initiated coverage on Healthways (NASDAQ: HWAY) with a Perform rating. Analyst Mohan Naidu said management creates uncertainty.

"The recent departure of CEO Ben Leedle creates near-term disruption around renewals and new deal flow as he played a key role in closing deals. HWAY’s CY15 guidance doesn’t include any deals that are not already contracted, but the uncertainty remains given this disruption. Health-system and hospital-based revenues continue to benefit from strong momentum in the Ornish program, and we see significant room for penetration," said Naidu.

"While HWAY made significant progress in pop health-based contracts, we believe that the vendors with significant presence in hospitals, and hospitals' affinity toward technology solutions, limit HWAY’s opportunity. Although the private exchanges' adoption remains slower than expected, we continue to believe that it poses long-term risks for the company’s employer business," added the analyst.

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

Shares of Healthways closed at $15.34 yesterday.

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