Stifel Warns Of More Uncertainty At Healthways Following CEO Departure

In a report published Tuesday, Stifel analysts downgraded the rating on

from Buy to Hold, following the departure of Ben Leedle as CEO. The company announced the removal of Ben Leedle as CEO, with effect from May 15. "In our view, this decision was likely being discussed at the Board level for a while, and was not a near term decision based on deteriorating results. That said, the lack of a permanent senior leader adds to the uncertainty for shareholders and HWAY customers alike," the analysts wrote. There is currently "no obvious successor" as the company's CEO, following the removal of Ben Leedle. "In our view, this likely represents yet further delay in our thesis for expanding margins - a consideration that in the near-term outweighs any opportunity that a new leadership team may bring," the report by Stifel added. The analysts believe that shareholders could view this has an opportunity to "reduce exposure," while adding, "…the new CEO, when appointed, may take a conservative stance to future outlooks." The EPS estimates for 2015 and 2016 have been reduced from $0.42 to $0.35 and from $0.66 to $0.58, respectively.