Canaccord Genuity analyst Richard Close maintained a Buy rating on Health Catalyst (HCAT – Research Report) yesterday and set a price target of $10.00.
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Richard Close has given his Buy rating due to a combination of factors that highlight Health Catalyst’s promising financial trajectory. The company reported strong fourth-quarter results and provided 2025 revenue guidance that aligns with earlier projections. Notably, the adjusted EBITDA guidance for 2025 was increased to approximately $41 million, up from the previous estimate of $39 million, which reflects the successful integration of recent acquisitions.
Furthermore, Health Catalyst has demonstrated robust client acquisition, with six new platform clients signed in the first quarter and a target of 40 new clients by the end of 2025. The company is also experiencing significant growth in its technology revenue, projected to rise by 13% in 2025, driven by the successful cross-selling of its Ignite platform. Despite some initial challenges in the first quarter, management’s confidence in achieving their targets and the favorable risk/reward profile at current stock levels support the Buy rating.
In another report released today, Citi also maintained a Buy rating on the stock with a $8.50 price target.