- Goldman Sachs analyst Christopher Merwin downgrades Benefitfocus (NASDAQ:BNFT) to Sell from Neutral as he sees no easing in competitive pressures and limited near-term catalysts.
- Sees upcoming Q2 open enrollment season as critical for BNFT, "though new business traction could take several quarters to flow into revenue growth — and even then we don'ts expect a significant uplift to growth given competitive and cyclical pressures."
- Sets price target at $13, implying 12% downside.
- Merwin's Sell rating contrasts with the Bullish Quant rating and the average Wall Street rating of Neutral (4 Neutral).
- Last month, an activist shareholder questioned the company on its CEO selection process after the new CEO was sued by his former employer.