National BankFor what it's worth, NB have downgraded most of the companies within their coverage. GLTA
Ahead of the Aug. 2 release of its first-quarter 2023 results, National Bank Financial’s Zachary Evershed trimmed his target for Neighbourly Pharmacy Inc. to $26.50 from $27, below the $32.15 average, with a “sector perform” rating.
“We still appreciate the potential for significant growth inherent in this roll-up story, with 3,500 independent pharmacies that fit NBLY’s criteria, providing a long runway,” he said. “However, we reiterate our Sector Perform rating as this potential appears well understood given NBLY’s premium valuation, even in the context of the rising cost of capital (which may throttle the company’s pace of growth) and legislative uncertainty (which could result in changes to baseline profitability assumptions). On the latter point, however, we remain cautiously optimistic as drug pricing has already seen significant cuts, and we do not believe dramatic industry restructuring is a likely outcome.”