BTIG analyst David Larsen has maintained their neutral stance on HCAT stock, giving a Hold rating on September 3.
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David Larsen has given his Hold rating due to a combination of factors that suggest a cautious approach towards Health Catalyst’s stock. Despite receiving positive feedback from hospital executives about their ongoing or increased spending with Health Catalyst, there are concerns about the potential negative impact of the Big Beautiful Bill Act on the company’s performance. Additionally, the transition to the Ignite platform might be causing delays in purchasing decisions, which could affect short-term revenue growth.
Moreover, while Health Catalyst’s solutions are deemed essential by some executives, the return on investment for their clinical informatics platform is perceived to be less immediate compared to revenue cycle products. This, coupled with potential cost reductions in hospitals and the uncertainty surrounding the full impact of payment reform, contributes to a cautious outlook. The valuation of Health Catalyst also plays a role, as it trades at a multiple of its projected 2027 EBITDA, which does not warrant a more optimistic rating at this time.
In another report released on September 3, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $3.50 price target.