Accolade named 2024 Digital Health Top Pick, added to Conviction List at Needham

Needham keeps a Buy rating and $17 price target on Accolade (ACCD) while name the stock as the firm’s Digital Health top pick for 2024. The analyst is also adding Accolade to the Needham Conviction List while removing Udemy (UDMY) and Phreesia (PHR). The firm contends that Accolade can profitably accelerate its revenue growth and build upon strong demand environment for care navigation services, noting that its industry checks indicate that the company can gain share in an environment in which industry data forecasts employer healthcare costs will increase between 5.4%-8.5% in 2024. Growing contribution from Accolade’s emerging health plan channel and EMO volume upside can also contribute to over-20% growth rate for the company in FY25, the firm added.