Apria Healthcare Group Inc.’s stock slumped on Thursday morning on an analyst’s downgrade and comments about a possible company sale.
Banc of America Securities’ Gary Taylor downgraded the Lake Forest home healthcare provider to “sell” from “neutral” and also slashed his price target by 42% to $18 from $31.
Apria shares were trading at $22.14 midday Thursday.
Taylor said in a research note that it looked unlikely that Apria, which had put itself up for sale during the summer, would find a buyer. He said that two bids for Apria at $30 a share are believed to have been pulled.
“We no longer believe the company can or will be sold,” Taylor said in the note.
Apria is scheduled to report its third-quarter earnings Tuesday. Taylor also reduced his 2006 profit estimate for Apria to $79.7 million from $110.4 million. Analysts were looking for $89.1 million in profit on average, according to a Thomson First Call poll.
