Analyst Daniel Grosslight of Citi maintained a Buy rating on Health Catalyst (HCAT – Research Report), reducing the price target to $8.50.
Daniel Grosslight has given his Buy rating due to a combination of factors, primarily focusing on Health Catalyst’s steady growth and strategic initiatives. The company’s fourth-quarter results and guidance for fiscal year 2025 were largely in line with expectations, with the technology segment showing robust growth that compensates for some weaknesses in the services area.
Health Catalyst’s revenue guidance remains stable, with a projected 9% year-over-year growth, and the company has increased its adjusted EBITDA forecast, reflecting benefits from recent acquisitions. Additionally, the transition to the Ignite platform is progressing as planned, which, despite being a slight challenge to retention rates, is expected to support long-term growth. The anticipated addition of new platform clients further de-risks their growth strategy, contributing to the positive outlook.
In another report released today, BTIG also maintained a Buy rating on the stock with a $10.00 price target.
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