BTIG analyst David Larsen has maintained their bullish stance on DH stock, giving a Buy rating today.
David Larsen has given his Buy rating due to a combination of factors that suggest a positive long-term outlook for Definitive Healthcare Corp (DH), despite current challenges. The company reported better-than-expected revenue and adjusted EBITDA for the fourth quarter of 2024, indicating a solid performance. However, the guidance for 2025 was slightly below expectations, with anticipated revenue and EBITDA lower than consensus estimates. This suggests that while the recovery is taking longer than anticipated, there is potential for improvement.
Despite persistent churn and a decline in customer count, DH’s management has indicated that the average contract size is increasing, which could lead to future upselling opportunities as market conditions improve. Furthermore, DH’s comprehensive data set in the healthcare ecosystem is expected to drive significant return on investment for its clients, positioning the company well for future growth. The broader industry trends are favorable, and although the recovery is gradual, DH’s focus on quality over price is likely to be rewarded as the health of the pharma industry continues to improve.