Nutex Health: Maxim Group maintains Buy, PT down to $205 from $225.

Nutex Health: Maxim Group maintains Buy, PT down to $205 from $225.

Maxim Group has adjusted its price target for Nutex Health (NUTX) from $225 to $205, maintaining a Buy rating on the shares. The move comes amidst ongoing accounting issues and regulatory scrutiny, as detailed in recent filings and reports [1].

On August 14, Nutex Health announced it was unable to timely file its 10-Q report for the three months ended June 30, 2025, due to incorrect accounting classification of certain non-cash obligations. The company's failure to file the report in a timely manner has been viewed as a potential headwind for the stock price [1].

In addition to the accounting concerns, Nutex Health is facing a class-action lawsuit alleging fraud and financial misstatements. The lawsuit, filed by Hagens Berman on behalf of investors, claims that Nutex and its partner, HaloMD, engaged in a coordinated scheme to defraud insurance companies by submitting ineligible claims [2].

The allegations surfaced in a report by Blue Orca Capital, which claimed that HaloMD's success was due to a fraudulent scheme to steal millions of dollars from insurance companies. Following the report, Nutex's shares fell more than 10% [2].

Further complicating the situation, Nutex Health has been accused of overstating the progress made in remediating material weaknesses in its internal controls over financial reporting. The company improperly accounted for certain stock-based compensation obligations, calculating them as equity rather than liabilities [2].

The controversy culminated on August 21, 2025, when Nutex filed a Form 8-K, acknowledging that certain prior financial statements should be restated due to improper treatment of non-cash obligations [2].

Maxim Group's analyst views these accounting restatements, arbitration dynamics, and lawsuits against Nutex's primary arbitration vendor, HaloMD, as potential headwinds to the stock price [1]. Despite these challenges, the firm maintains a Buy rating on the shares, with a new price target of $205.

References:
[1] https://www.tipranks.com/news/the-fly/nutex-health-price-target-lowered-to-205-from-225-at-maxim-thefly
[2] https://www.prnewswire.com/news-releases/nutex-health-nutx-securities-suit-alleges-fraud-and-financial-misstatements---hagens-berman-302538433.html