Leerink Partners reiterated a Market Perform rating on Castlight Health Inc. (NYSE: CSLT), and cut the price target to $3.50 (from $5.00), following the company's 4Q earnings report. Revenue of $21.3m was slightly above guidance of $20.7-21m and consensus at $20.9m. Non-GAAP EPS came in at ($0.16), at the high end of guidance and a penny better than the Street at ($0.17). However guidance for 1Q is ($0.15) - ($0.16) vs. ($0.14) due to ongoing infrastructure and R&D investments.

Analyst Steven Wardell commented, "Last night Castlight reported a slight 4Q beat and guided in-line. Management guided 1Q slightly below consensus due to additional investments, but FY16 guidance is in-line. The guide is weighted to 2H16, which we believe adds to uncertainty to the name. A net loss of customers in the quarter is concerning and combined with longer-than-expected implementation times, we believe a lot of execution risk remains in the stock. We maintain our FY16 estimates, but lower FY17E and beyond in our DCF. We lower our PT to ~$3.50 and remain MP until we see clear signs that growth is stabilizing."

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Shares of Castlight Health Inc. closed at $3.33 yesterday.