CareCloud’s Strategic Growth and Financial Improvements Justify Buy Rating and $6.00 Price Target

Analyst Allen Klee of Maxim Group maintained a Buy rating on CareCloud (CCLD – Research Report), with a price target of $6.00.

Allen Klee has given his Buy rating due to a combination of factors that highlight CareCloud’s financial improvements and strategic initiatives. The company reported a significant increase in adjusted EBITDA, up 73% year-over-year, surpassing both the analyst’s and consensus estimates. This improvement is attributed to effective expense control measures and the introduction of AI-driven solutions, which have enhanced operational efficiency.
Furthermore, CareCloud’s management has provided optimistic guidance for 2025, projecting revenue growth and a notable increase in adjusted EBITDA. The anticipated reduction in preferred dividend obligations, resulting from the conversion of Series A preferred stock, is expected to improve free cash flow significantly. Additionally, the company’s strategic focus on mergers and acquisitions, supported by a strong track record, is likely to drive future growth. These factors, combined with the stock’s attractive valuation compared to peers, underpin Allen Klee’s Buy rating and the $6.00 price target.