Piper Sandler downgrades Accolade ahead of shareholder vote

Investing.com -- Piper Sandler downgraded Accolade Inc (NASDAQ:ACCD) to Neutral from Overweight and cut its price target to $7.03 per share, aligning with the proposed acquisition price in the company's pending sale to Transcarent.

Accolade agreed to be acquired by Transcarent, a healthcare navigation firm, for $7.03 per share in cash, a 110% premium to its Jan. 7 closing price.

Shareholders are set to vote on the deal at a special meeting on March 27, with closing expected in the second quarter, pending approval.

“We believe the merger terms are generally favorable and fall in line with several comparable transactions,” analyst at Piper Sandler said.

Piper Sandler noted that Accolade’s fiscal third-quarter 2025 revenue of $105.1 million slightly missed expectations, while adjusted EBITDA of negative $3.8 million came in marginally ahead. The firm also flagged downside risks to consensus estimates for fiscal years 2026-2028, based on management projections.

Despite viewing the sale process as competitive and the terms as generally favorable, Piper Sandler sees limited upside for the stock at this stage.