David Larsen, an analyst from BTIG, maintained the Buy rating on Health Catalyst (HCAT – Research Report). The associated price target is $15.00.
David Larsen has given his Buy rating due to a combination of factors surrounding Health Catalyst’s financial performance and future outlook. Despite a modest year-over-year revenue growth of 4% in the 2024 guidance, which fell short of expectations, Larsen is encouraged by the company’s EBITDA guidance that aligns with or exceeds previous estimates. Additionally, the management’s expectation of a revenue rebound by 2025, with anticipated growth of 10-15% and an EBITDA margin of 10-12%, contributes to the positive assessment. Furthermore, the recent signing of a significant TEMS deal and the addition of new DOS clients in 2023 demonstrate the company’s ability to expand its customer base and, by extension, its revenue streams.
Larsen’s optimism extends to Health Catalyst’s long-term potential, highlighted by the projected $500M revenue and approximately $100M EBITDA by 2028, which reflects both the company’s high-quality technology offerings and its ability to deliver analytics that stand out in the market. The firm’s strategic focus on balancing growth with earnings, cost reduction efforts, and high ROI for clients using its system further underpin the Buy rating. Additionally, the transitional changes in executive roles, with a new CFO and COO, are seen as a positive move for the company’s future direction. Despite a challenging 2023, the outlook for 2024 and beyond, along with the company’s valuation and cost reduction initiatives, suggest a promising trajectory for Health Catalyst, justifying Larsen’s Buy rating.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $11.00 price target.
HCAT’s price has also changed moderately for the past six months – from $11.740 to $8.470, which is a -27.85% drop .
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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.
Read More on HCAT:
- Health Catalyst Executive Team Undergoes Major Reshuffle
- Health Catalyst Reports Fourth Quarter and Year End 2023 Results
- Health Catalyst’s Abe Health Registry receives QPP approval
- Health Catalyst to Announce Fourth Quarter and Full Year 2023 Operating Results and Host Conference Call on Thursday, February 22, 2024
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