In a report released yesterday, Stan Berenshteyn from Wells Fargo reiterated a Buy rating on Health Catalyst (HCAT – Research Report), with a price target of $10.00.
Stan Berenshteyn has given his Buy rating due to a combination of factors including Health Catalyst’s strong first-quarter performance, which exceeded expectations in terms of adjusted EBITDA due to effective cost reductions. The company has also maintained a positive outlook by reiterating its guidance for 2025, suggesting confidence in its revenue and EBITDA targets. Additionally, the transition from the legacy DOS platform to the newer Ignite platform is expected to alleviate pricing pressures, with the drag on dollar-based retention anticipated to peak this year and improve thereafter.
Furthermore, Health Catalyst’s introduction of the Ignite Spark platform is seen as a strategic move to tap into smaller health systems, enhancing its market reach and conversion rates. Despite some delays in Health Information Exchange implementations and life sciences opportunities, these are viewed as macroeconomic timing issues rather than company-specific problems. Overall, the combination of these factors, along with a balanced valuation approach, supports the Buy rating with a price target of $10.
According to TipRanks, Berenshteyn is an analyst with an average return of -4.6% and a 55.68% success rate. Berenshteyn covers the Healthcare sector, focusing on stocks such as Omnicell, Healthequity, and Veeva Systems.
In another report released today, BTIG also maintained a Buy rating on the stock with a $10.00 price target.