Health Catalyst downgraded to Neutral from Buy at BTIG

BTIG downgraded Health Catalyst (HCAT) to Neutral from Buy without a price target The firm cites “several ongoing challenges” at the company for the downgrade. The budget reconciliation bill, if passed into law, may reduce the total number of insured lives in the U.S. by 15M people by 2034, which includes 7.6M fewer people on Medicaid, or an estimated 10% total reduction in Medicaid enrollment, the analyst tells investors in a research note. BTIG believes there may also be fewer lives enrolled in exchange-based plans and that Medicare Advantage pressure on plans will likely continue into 2026. BTIG believes hospital budget pressure may cause ongoing challenges at Health Catalyst. Expectations for the company seem too high amid market headwinds, the firm says.