Canaccord Genuity analyst Richard Close maintained a Hold rating on HealthStream yesterday and set a price target of $28.00.
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Richard Close has given his Hold rating due to a combination of factors surrounding HealthStream’s recent acquisition and its financial implications. The purchase of MissionCare appears well-aligned with the company’s strategic focus on workforce development for healthcare providers, adding a third “Career Network” and expanding the company’s offerings. While the acquisition has potential to drive value given demographic trends and growing demand for non-medical caregivers, the lack of financial details—such as revenue size or historical EBITDA performance—raises uncertainties regarding the valuation and its impact.
Another contributing factor to the Hold rating stems from the stock award contributed by HealthStream’s CEO, Robert Frist Jr. While this move is positive for employee morale and long-term engagement, it results in notable financial adjustments, including reductions in operating income and net income for the current quarter. Although adjusted EBITDA impact is minimal, the lack of detailed data on the recent acquisition, combined with near-term financial adjustments, suggests a neutral stance until more clarity emerges, particularly with upcoming earnings reports.
In another report released on December 9, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $26.00 price target.
HSTM’s price has also changed moderately for the past six months – from $27.510 to $23.910, which is a -13.09% drop .