Definitive Healthcare price target lowered to $5 from $6 at Stifel

Stifel lowered the firm’s price target on Definitive Healthcare (DH) to $5 from $6 and keeps a Buy rating on the shares. Q1 outperformed in terms of both revenue and EBITDA, but subscription revenue declined 5% quarter-over-quarter and 7% year-over-year, reflecting elevated customer churn, the analyst tells investors. Given Definitive’s costs are relatively fixed, the firm believes there will be pressure on both gross and EBITDA margins in 2025, but argues that management’s guidance of 480 basis points of EBITDA margin decline “seems reasonable and consistent with this dynamic.”