Analyst Kevin Fischbeck of Bank of America Securities reiterated a Sell rating on Agiliti (AGTI – Research Report), with a price target of $6.25.
Kevin Fischbeck, an analyst at Bank of America Securities, has assigned a ‘Sell’ rating to Agiliti’s stock, primarily due to uncertainty around its future growth trajectory. While Agiliti’s adjusted EBITDA was 4% above consensus, driven by stronger revenues and improved margins, and the company’s Equipment Solutions and Clinical Engineering sectors performed well, the On-Site Managed Services sector fell short of consensus estimates. Despite Agiliti affirming its FY23 guidance, Fischbeck maintains the ‘Underperform’ rating, attributing this to the lack of clarity on when the company’s core growth will pick up pace.
In addition, Fischbeck points out that Agiliti’s Q4 revenue is projected to be 1% below consensus, even though the projected Q4 adjusted EBITDA aligns with consensus estimates. He also highlights that while the company expects mid-single digit revenue growth in 2024, it has not yet released formal guidance for that year. Moreover, the company intends to focus on reducing its debt and reinvesting in the business, temporarily stepping back from active merger and acquisition pursuits. Although Equipment Solutions and Clinical Engineering revenues surpassed consensus, the On-site Managed Services revenue was below consensus, contributing to the ‘Sell’ rating.
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Agiliti (AGTI) Company Description:
Agiliti, Inc. provides end-to-end healthcare technology management and service solutions to the United States healthcare industry. It also offers customers with access to quality healthcare technology and implement comprehensive medical equipment management and service solutions to reduce capital and operating expenses, increase medical equipment and staff productivity and support improved patient safety and outcomes. The company was founded in 1939 and is headquartered in Minneapolis, MN.
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