From Financial Modeling Prep: 2025-04-09 13:02:00

Evercore ISI downgraded Health Catalyst (NASDAQ:HCAT) from Outperform to In Line, lowering the price target to $4.00 due to uncertainties in the company’s outlook, leading to a 4% drop in shares. Further downside risk remains in 2024, with challenges in earnings and revenue trajectory, reflected in a valuation of 8x estimated 2025 EBITDA.

Short-term pressures include transitional costs from exiting unprofitable programs and margin drag from onboarding new clients. While these moves may support margin recovery later, they are expected to impact Q1 performance. Hospital IT spending softening and macro risks like reduced Medicaid coverage and increased expenses on medical supplies could limit revenue growth and compress margins.

Health Catalyst could benefit from Ignite platform migrations and improved TEMS profitability, but gains may only partially offset financial drag.



Read more at Financial Modeling Prep:: Evercore Downgrades Health Catalyst to In Line, Sh…