William Blair analyst Ryan Daniels has maintained their bullish stance on HCAT stock, giving a Buy rating on March 18.
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Ryan Daniels has given his Buy rating due to a combination of factors that highlight Health Catalyst’s potential for growth despite recent share price declines. The company’s stock has suffered a significant drop, reaching near all-time lows, largely due to a shift in investor sentiment away from small-cap healthcare IT firms. However, Daniels sees this as an overreaction, presenting a buying opportunity given the company’s solid fundamentals and growth prospects.
Daniels points to the promising outlook for Health Catalyst, particularly with its next-generation Ignite data and analytics platform, which is contributing to a resurgence in high-margin technology sales. The platform has attracted a record number of new clients and is expected to continue this trend into 2025. Moreover, the platform’s affordability and ease of integration make it appealing to a broader market. These factors, combined with management’s positive guidance on revenue growth and adjusted EBITDA, underpin Daniels’s optimistic view of the company’s future performance.
In another report released on March 18, Canaccord Genuity also maintained a Buy rating on the stock with a $10.00 price target.