Health Catalyst price target lowered to $8 from $13 at RBC Capital

RBC Capital analyst Sean Dodge lowered the firm’s price target on Health Catalyst to $8 from $13 and keeps a Sector Perform rating on the shares. The company’s Q3 pre-announcement was better than expected and its bookings were in-line with expectations, which should support growth in FY24, the analyst tells investors in a research note. Given that Health Catalyst’s bookings remain in line with company expectations through Q3, RBC is assuming that the company is continuing to track toward its internal plans for FY24 and ultimately moving toward its 10% EBITDA margin target for FY25 vs. 3.5%-4.0% outlook for FY23. The firm adds however that its reduced price target is due to significant multiple compression across the sector as it continues to value shares at a slight discount to cash-generating HCIT peers.