Raymond James 09:46 AM EDT, 04/21/2021 (MT Newswires) -- Skylight Health Group Inc. (SHG.V) shares declined more than 7% on Wednesday after the medical clinic company's fourth quarter revenue was in line with forecasts, while EBITDA and net income came in below analysts' estimates.
Raymond James analyst Rahul Sarugaser lowered his price target on the stock to $1.50 from $2.25, and maintained an Outperform rating.
"While SHG's 4Q20 revenue performance was solid, as expected, some clean-up of legacy items came back to haunt the company this quarter, particularly in the form of operating expenses and share-based compensation," Sarugaser said in a note to clients.
"While we are confident in SHG's long-term value - supposing it can demonstrate its chops in new clinic integration and in driving organic growth - we see this freshly-revealed dilution as a detriment and will be monitoring this closely going forward," the analyst said.
Skylight shares declined $0.09, or 7.4%, to $1.13 in TSX Venture Exchange trading.