Analyst Richard Close of Canaccord Genuity maintained a Buy rating on Health Catalyst (HCAT – Research Report), retaining the price target of $10.00.
Richard Close’s rating is based on several strategic factors that highlight Health Catalyst’s potential for growth and profitability. The company’s recent $5 million share repurchase demonstrates management’s confidence in achieving its profitability targets by 2025. This buyback not only reduces the number of outstanding shares but also signals a strong belief in the company’s future financial performance.
Additionally, the acquisition of Upfront Healthcare for approximately $86 million is expected to enhance Health Catalyst’s market position and operational capabilities. The analyst maintains a price target of $10, reflecting a target multiple of 17.3 times the estimated adjusted EBITDA for 2025, which is a 25% premium compared to its peer group. This optimistic outlook is supported by the anticipated reduction in share dilution and the strategic moves made by the company to strengthen its financial standing.
In another report released on March 12, J.P. Morgan also maintained a Buy rating on the stock with a $9.00 price target.
HCAT’s price has also changed dramatically for the past six months – from $8.700 to $4.450, which is a -48.85% drop .