In a report released today, Daniel Grosslight from Citi maintained a Buy rating on Health Catalyst (HCAT – Research Report), with a price target of $10.00.
Daniel Grosslight’s rating is based on a combination of Health Catalyst’s strong performance in the first quarter and the anticipated benefits from the launch of its new technology platform, Ignite. Health Catalyst, with the ticker HCAT, reported first-quarter earnings that not only aligned with guidance but also slightly exceeded the mid-point of adjusted EBITDA estimates. Grosslight was notably impressed by the company’s Services Gross Profit, which surpassed expectations due to an improvement in gross margins year-over-year. This margin expansion indicates operational efficiencies achieved through better management of consulting headcount. Despite the introduction of second-quarter guidance that was marginally below expectations, the maintained full-year outlook suggests steady revenue growth and further operational efficiencies.
Furthermore, the formal launch of HCAT’s Ignite platform is a significant positive factor in Grosslight’s analysis. This advanced platform leverages technology partnerships and Health Catalyst’s domain expertise, which is expected to enhance the company’s market strategy flexibility. Notably, Ignite should enable Health Catalyst to better serve its non-DOS client base by offering more scalable and modular solutions, smoothing the path for increased average revenue per user. Additionally, the integration of artificial intelligence and new LLMs, such as a chatbot to improve chart abstraction efficiency, positions Health Catalyst favorably in the industry. These strategic developments, coupled with the expected share price return of 49.9%, underpin Grosslight’s Buy rating for HCAT.
In another report released today, Barclays also maintained a Buy rating on the stock with a $14.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of HCAT in relation to earlier this year.
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Health Catalyst (HCAT) Company Description:
Health Catalyst, Inc. engages in the provision of data and analytics technology and services to healthcare organizations. It operates through the Technology, and Professional Services segments. The Technology segment includes its data platform, analytics applications, and support services. The Professional Services segment combines analytics, implementation, strategic advisory, outsource, and improvement services to deliver expertise to its customers. The company was founded by Steven C. Barlow and Thomas D. Burton in 2008 and is headquartered in Salt Lake City, UT.
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