Definitive Healthcare downgraded to Hold from Buy at Needham

Needham downgraded Definitive Healthcare to Hold from Buy without a price target. The company announced a CEO transition and a preliminary fiscal 2024 growth outlook that come in below consensus expectations, the analyst tells investors in a research note. The firm says the demand environment for Definitive’s solutions “clearly remains challenged” and that recent industry checks over the past month support this view. Discussions with life sciences vendors indicate a “risk-averse” mentality in which buyers are sticking with incumbent vendors amid a tighter than expected budgetary environment that has persisted from 2023 into 2024, says Needham. The firm is stepping to the sidelines pending a clearer picture of an improved spending environment.