Castlight Health's (CSLT) Slight Beat and Mixed Guide Keeps Leerink Partners on the Sidelines - PT to $3.50

Leerink Partners reiterated a Market Perform rating on Castlight Health Inc. (NYSE: CSLT), and cut the price target to $3.50 (from $5.00), following the company's 4Q earnings report. Revenue of $21.3m was slightly above guidance of $20.7-21m and consensus at $20.9m. Non-GAAP EPS came in at ($0.16), at the high end of guidance and a penny better than the Street at ($0.17). However guidance for 1Q is ($0.15) - ($0.16) vs. ($0.14) due to ongoing infrastructure and R&D investments.

Analyst Steven Wardell commented, "Last night Castlight reported a slight 4Q beat and guided in-line. Management guided 1Q slightly below consensus due to additional investments, but FY16 guidance is in-line. The guide is weighted to 2H16, which we believe adds to uncertainty to the name. A net loss of customers in the quarter is concerning and combined with longer-than-expected implementation times, we believe a lot of execution risk remains in the stock. We maintain our FY16 estimates, but lower FY17E and beyond in our DCF. We lower our PT to ~$3.50 and remain MP until we see clear signs that growth is stabilizing."

For an analyst ratings summary and ratings history on Castlight Health Inc. click here. For more ratings news on Castlight Health Inc. click here.

Shares of Castlight Health Inc. closed at $3.33 yesterday.

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