Wells Fargo Analyst Downgrades Inovalon as FY16 Guidance Lowered

By Harriet Lefton

Wells Fargo analyst Jamie Stockton today downgraded Inovalon (NASDAQ: INOV) to a Hold rating after the tech company lowered its earnings and revenue guidance for the full year 2016 on December 12.

Inovalon’s updated guidance for revenue is now $426-428 million down from previous guidance of $470-490 million which had been provided on August 3 2016 and reaffirmed on November 2 2016.

The company, which develops cloud-based data analytics and data-driven intervention platforms to the healthcare industry, announced that a collaboration agreement which was expected to bring in significant revenue had broken down on 7 December.

The analyst consensus price target for Inovalon on TipRanks is $15.80 – which represents a 64.07% upside from the current share price of $9.63.

Jamie Stockton has a 57% success rate on TipRanks based on the fact that 13 out of 23 of his recommendations since 2010 were profitable.