Accolade to return to 20% revenue growth amid healthy demand, says Needham

Needham analyst Ryan MacDonald keeps a Buy rating and $17 price target on Accolade after its Q2 earnings beat and affirmed guidance. The company is in the heart of the selling season, and the management commentary around demand and win rates was positive with customer focus on controlling healthcare costs, improving the employee experience and improving healthcare outcomes being the primary driver of adoption, the analyst tells investors in a research note. Needham adds that it is confident that Accolade will return to 20% growth and achieve its positive adjusted EBITDA target given the healthy demand environment and the company’s success in building out the health plan channel.