Health Catalyst downgraded to Neutral from Buy at Citi

Citi analyst Daniel Grosslight downgraded Health Catalyst (HCAT) to Neutral from Buy with a price target of $3.50, down from $6.50. Following a difficult Q2 print and the retirement of longtime CEO Dan Burton next year, the firm downgraded the shares, saying the end-market headwinds the company faces seem more structural in nature, which will lead to anemic topline growth for the foreseeable future. While the company has pointed to pending Medicaid funding cuts as driving less spend, the firm questions if the market will start to see the disintermediation of certain solutions due to AI-driven in-sourcing, the analyst tells investors in a research note.