Accolade initiated with an Outperform at Leerink

Leerink initiated coverage of Accolade with an Outperform rating and $16 price target. Accolade has long followed a narrow path of delivering sustainable 20% revenue growth while also taking a steady path towards EBITDA, and eventually net income/free cash flow, breakeven, and the company is now on the tipping point of hitting those goals while also accelerating its profitability path through both natural leverage and targeted cost cuts, the analyst tells investors in a research note.