Mon Sep 23 21:13:41 UTC 2024: ## Citi Adjusts Price Target for Multiplan Co. Following Reverse Stock Split

**New York, NY** – Citigroup has adjusted its price target for Multiplan Co. (NYSE: MPLN) to $10.00 from $17.20, maintaining a Neutral rating on the stock. This adjustment follows the company’s 1-for-40 reverse stock split, which took effect on Monday.

The firm clarified that the change in price target is directly tied to the reverse stock split, aiming to align the model and target price accordingly. The new $10.00 target is based on an 8x multiple of Citi’s projected adjusted EBITDA estimates for fiscal year 2025.

While the price target has been revised, Citi’s overall estimates for Multiplan Co. remain unchanged, except for per-share items which have been updated to reflect the reverse stock split. The neutral rating suggests that Citi expects Multiplan’s stock to perform in line with market averages.

The news comes on the heels of other recent developments for Multiplan. Piper Sandler reduced its price target for the company following Multiplan’s second-quarter fiscal year 2024 results, which fell short of consensus estimates. The company reported a weaker-than-expected revenue yield in its core business and slow bookings for its HST/BST services, leading to a downward revision of full-year guidance.

Despite these setbacks, Multiplan continues to focus on long-term growth. The company reaffirmed its 8-10% long-term growth rate target, though it has been slightly delayed.

Multiplan also announced a change in its financial leadership, with Doug Garis succeeding Jim Head as Chief Financial Officer. In its Q2 2024 earnings report, the company reported a 1.9% year-over-year revenue decrease to $233.5 million, despite an 8% increase in sales and double-digit growth in its pipeline.

As part of its strategic shift, Multiplan is transitioning towards a data and technology-focused approach. New products Plan Optics and BenInsights have been successfully sold. The company also revised its full-year 2024 revenue guidance to between $935 million and $955 million.

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