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Thursday, February 21, 2019

Piper ‘not buying’ Inovalon’s 2019 outlook, expects another miss

Inovalon missed Q4 revenue and profitability, guided Q1 below consensus views, but reiterated its full year 2019 guidance, Piper Jaffray analyst Sean Wieland tells investors in a post-earnings research note titled “We’re Not Buying It.” It is important to focus on organic subscription revenue growth, which was down 9% sequentially and flat for the trailing two years, but now must grow 24% in 2019 to hit the midpoint of guidance, says the analyst. He’s “not buying it,” and is calling for another year-end miss. Wieland reiterates an Underweight rating on Inovalon with an $8 price target.

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