BTIG analyst David Larsen has maintained their neutral stance on DH stock, giving a Hold rating today.
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David Larsen has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for Definitive Healthcare Corp. The company reported solid third-quarter results, with revenue and adjusted EBITDA surpassing expectations and guidance. This indicates a stabilization in the business, as the rate of year-over-year declines has slowed for the third consecutive quarter. However, despite these improvements, the retention rates remain below the desired level, and revenue growth for 2025 is projected to be low or even decline modestly year-over-year.
While Definitive Healthcare is making progress with new customer wins and partnerships, which could drive future growth, the full recovery of retention rates will take time. The company’s valuation, trading at a lower multiple compared to its sub-sector, also suggests a cautious outlook. Therefore, while there are encouraging signs of improvement, the uncertainties and challenges ahead justify a Hold rating at this time.