Analyst Richard Close of Canaccord Genuity maintained a Buy rating on Health Catalyst (HCAT – Research Report), reducing the price target to $9.00.
Richard Close has given his Buy rating due to a combination of factors that suggest Health Catalyst is positioned for future growth despite some current challenges. The company’s recent favorable first-quarter report and positive commentary indicate that healthcare providers are proactively adopting technology and services, which bodes well for Health Catalyst’s offerings. Additionally, the introduction of the Ignite platform, which is attractively priced and offers flexibility, has been well-received, with a significant portion of new clients coming from existing app channels.
While there are some concerns, such as the second-quarter guidance being below expectations due to delayed bookings and implementations, the overall outlook remains positive. The management’s confidence in a growing pipeline of new business opportunities and the rapid transition of clients to the Ignite platform are encouraging signs. The reiteration of the company’s annual guidance, along with a deeply discounted valuation, suggests that Health Catalyst offers value at current levels. These factors, combined with the company’s focus on organic growth, underpin Richard Close’s Buy rating.
In another report released today, BTIG also maintained a Buy rating on the stock with a $10.00 price target.