Needham analyst Ryan MacDonald has reiterated their neutral stance on DH stock, giving a Hold rating on August 6.
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Ryan MacDonald has given his Hold rating due to a combination of factors influencing Definitive Healthcare Corp’s current market position. The company has shown a better-than-expected performance in the recent quarter, attributed to its efforts in revitalizing its market strategies. However, despite these positive developments, there is a need to keep an eye on customer churn, particularly among small and medium-sized businesses, although the impact on larger accounts has been minimal.
MacDonald notes that the average revenue per user (ARPU) is on the rise, which indicates a focus on retaining high-value clients. While the company’s guidance for fiscal year 2025 has been adjusted upwards, the retention rates remain a variable factor, especially with upcoming year-end renewals. Therefore, while there is optimism about the company’s turnaround efforts, a more definitive assessment will depend on further evidence of sustained success.
In another report released on August 6, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $4.00 price target.