HCAT Stock Forecast & Price Target

Health Catalyst Inc. reported a 6% year-over-year revenue increase, reaching $79.6 million, which aligns closely with expectations. The company is focused on expanding its higher-margin, recurring technology revenue through a successful strategy that has already resulted in six new platform clients, with a target of 40 for the fiscal year, thus enhancing its growth prospects. Additionally, management has raised its EBITDA guidance by $2 million, reflecting confidence in achieving operational synergies sooner than anticipated and setting a positive tone for future financial performance.

Health Catalyst Inc. is experiencing a negative outlook due to several financial metrics that indicate underperformance and challenges in revenue growth. The company's EBITDA guidance for the upcoming period is approximately $4 million, significantly lower than the consensus estimate of $8.8 million, reflecting a -55% miss and suggesting difficulties in achieving profitability amid shifting business dynamics. Additionally, guidance for 1Q25 revenues of $79 million falls short of consensus expectations by -4%, compounded by a negative mix shift in their business and a slowdown in acquisitions impacting gross margins, further stressing the company's financial stability.