Analyst Stan Berenshteyn of Wells Fargo maintained a Buy rating on Health Catalyst, reducing the price target to $5.00.
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Stan Berenshteyn has given his Buy rating due to a combination of factors including Health Catalyst’s recent financial performance and future prospects. The company slightly exceeded expectations in the third quarter with revenue and adjusted EBITDA surpassing both Wells Fargo Securities and consensus estimates. This performance, along with the reaffirmation of their 2025 revenue and adjusted EBITDA outlook, indicates a stable financial trajectory despite some challenges.
Additionally, Berenshteyn notes the robust sales pipeline and the ongoing client migration to the Ignite platform, which is expected to be largely completed by the first half of 2026. While there are uncertainties regarding post-migration revenue pacing and the impact of leadership changes, the demand for solutions that offer a return on investment remains strong. These factors, combined with a valuation that supports an overweight position, contribute to the Buy rating, although the stock may face constraints until a clearer revenue recovery story emerges.
Berenshteyn covers the Healthcare sector, focusing on stocks such as Healthequity, Veeva Systems, and Omnicell. According to TipRanks, Berenshteyn has an average return of -4.4% and a 52.34% success rate on recommended stocks.