Needham analyst Ryan MacDonald has reiterated their neutral stance on DH stock, giving a Hold rating today.
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Ryan MacDonald has given his Hold rating due to a combination of factors surrounding Definitive Healthcare Corp’s current performance and future prospects. While the company has shown a promising start to the year by exceeding expectations during a crucial renewal period, there are still concerns about customer retention rates, which remain lower than desired.
Although there are positive developments, such as strong new customer acquisitions and a notable competitive win, these improvements are not yet sufficient for a more optimistic rating. The company’s management has raised the lower end of their revenue guidance for FY25, which is a positive sign, but the dynamic nature of retention rates warrants a cautious approach. MacDonald is waiting for more consistent evidence of success before considering a more favorable rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $5.00 price target.