, an analyst from BMO Capital, has initiated a new Hold rating on TruBridge (TBRG).
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BMO Capital’s rating is based on TruBridge’s strategic shift towards revenue cycle management (RCM), which offers a more promising growth avenue compared to its traditional focus on clinical software. Despite making significant progress in this area over the past few years, the company’s execution has faced some challenges. Recently, TruBridge experienced increased client attrition in its RCM segment, leading to a temporary halt in offshore hiring. Management has responded by implementing measures to address these issues and reignite growth.
BMO Capital acknowledges the potential for TruBridge’s valuation to improve as the company successfully implements its initiatives. The expectation is for the valuation to move from the current 6x EBITDA to approximately 9x. While the realignment with RCM presents a significant long-term opportunity, the firm maintains a Hold rating, indicating that while there is potential for growth, the current execution challenges warrant a cautious approach.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TBRG in relation to earlier this year.