Cano Health Inc. (CANO:NYE) Analysts see stock doubling with a $9 target

STA Research
by: STA Research
Cano Health Inc.

Analysts rate Cano Health stock with a consensus Buy rating with an average Cano stock price target of $9.00 per share over the next 12 months.

Citigroup recently lowered the Cano Health stock price target from $8 to $7.

Based on the Cano Health stock forecast from 7 analysts, the average analyst Cano stock price target is USD 9.00 over the next 12 months. Cano Health Inc’s average analyst rating is Buy. Stock Target Advisor’s own stock analysis of Cano Health stock forecast is Slightly Bearish, which is based on 4 positive signals and 6 negative signals. At the last closing, Cano Health stock price was USD 5.55Cano Health stock price has changed by +0.75% over the past week, -0.98% over the past month and -49.77% over the last year.

Cano Health, Inc. provides primary care medical services to its members in the United States and Puerto Rico. It owns and operates medical centers enabled by CanoPanorama, a proprietary population health management technology-powered platform that provides the healthcare providers at its medical centers with a 360-degree view of their members with actionable insights to improve care decisions and member engagement. The company also operates pharmacies, as well as provides dental services in its medical centers. As of December 31, 2021, it operated 130 owned medical centers and approximately 1000 affiliate providers serving approximately 227,005 members. Cano Health, Inc. was founded in 2009 and is headquartered in Miami, Florida.

 

What we like:

Low volatility:

The annual returns for CANO stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive free cash flow:

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth:

CANO stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

High Gross Profit to Asset Ratio:

CANO stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Poor risk-adjusted returns:

This company is delivering below median risk-adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Highly leveraged:

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the CANO stock news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis:

Cano Health stock price is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth:

Cano Health stock has shown below median earnings growth in the previous 5 years compared to its sector.

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