Oppenheimer Remains a Buy on Catasys (CATS)


Oppenheimer analyst Mohan Naidu maintained a Buy rating on Catasys (CATS) today and set a price target of $16. The company’s shares opened today at $13.20.

Naidu noted:

“We hosted CATS mgmt. for investor meetings. Our discussions on outreach pool expansion, OnTrak 2.0 launch and success in engaging/enrolling members leads us to believe in positive upcoming catalysts. With outreach pool already at 75K, we believe CATS is well ahead of schedule in meeting its 100K member goal, and is likely to reach that goal this year. OnTrak 2.0 is currently being marketed and we expect it to be launched over summer. Further, based on the current positive discussions with prospects, mgmt. expressed confidence in likely deal flow this year. Given the growth in the outreach pool and new product launch, the company needs additional capital ($10M more) but the CEO stressed their preference and confidence in meeting that need through additional debt rather than equity.”

According to TipRanks.com, Naidu is a 4-star analyst with an average return of 8.3% and a 51.4% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Evolent Health.

Catasys has an analyst consensus of Moderate Buy, with a price target consensus of $15.50.

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Based on Catasys’ latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $1.44 million. In comparison, last year the company had a GAAP net loss of $4.22 million.

Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is negative on the stock.

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Catasys, Inc. provides data analytics based specialized behavioral health management and integrated treatment services to health plans. It offers services through its platform OnTrak solution which is designed to improve member health and, at the same time, lower costs to the insurer for underserved populations where behavioral health conditions cause or exacerbate co-existing medical conditions. The company was founded by Terren S. Peizer in February 2003 and is headquartered in Los Angeles, CA.

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