UPDATE: Citi Downgrades TalkSpace (TALK) to Neutral

(Updated - November 16, 2021 5:47 AM EST)

Citi analyst Daniel Grosslight downgraded TalkSpace (NASDAQ: TALK) from Buy to Neutral with a price target of $3.50 (from $7.00).

The analyst comments "We are downgrading TALK to Neutral/High Risk and decreasing our PT from $7 to $3.50 after a difficult 3Q earnings print and mgmt. shakeup. While the issues this quarter were easily diagnosed (retention issues, product delays, billing difficulties, low utilization rates, high provider/marketing expense), we do not think they will be easily remedied. This is exacerbated by mgmt. attrition (Co-Founders Orin and Roni Frank are exiting) and lack of FY21 guidance. Our follow-up conversation with TALK did give us incremental confidence in the current mgmt. team; however, we believe it will take some time for a new CEO to the right the ship. In the meantime, competitive intensity should only increase, and execution uncertainty will likely keep TALK in the doldrums for some time."

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

Shares of TalkSpace closed at $3.39 yesterday.

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