In a report released today, Stan Berenshteyn from Wells Fargo maintained a Buy rating on Health Catalyst (HCAT – Research Report), with a price target of $10.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Stan Berenshteyn has given his Buy rating due to a combination of factors including Health Catalyst’s current stock valuation, which is significantly lower compared to its industry peers. This undervaluation suggests potential for stock price appreciation as the company demonstrates consistent performance. Berenshteyn anticipates that the upcoming second-quarter bookings will positively influence investor sentiment, further supporting the stock’s potential for growth.
Additionally, Health Catalyst’s strong visibility into its 2025 revenue and the expected acceleration in DOS client growth contribute to a positive outlook. The company is projected to improve its dollar-based retention rate, indicating stronger customer loyalty and revenue stability. Despite some legislative uncertainties, Berenshteyn believes that these are more of a temporary obstacle rather than a long-term issue, with the potential for a more favorable business environment in the latter half of 2025. The combination of these factors, along with the company’s attractive EBITDA growth profile, supports the Buy rating.
Berenshteyn covers the Healthcare sector, focusing on stocks such as Omnicell, Healthequity, and Doximity. According to TipRanks, Berenshteyn has an average return of 0.6% and a 61.22% success rate on recommended stocks.