Canaccord downgrades Definitive Healthcare on third workforce reduction

Canaccord last night downgraded Definitive Healthcare to Hold from Buy with an unchanged price target of $10. The company announced its intentions to initiate a restructuring plan that will impact 154 employees, which equates to roughly 17% of its workforce, the analyst tells investors in a research note. The firm says this is the third workforce reduction that Definitive will have executed since the beginning of 2023, but it is by a factor of three-times the most significant of the changes. This sends the message that the company has limited expectations for or line of sight to any near-term recovery in growth, contends Canaccord. Absent takeover, the firm believes “this is a company that’s very likely to be a single-digit grower in 2024.”