TruBridge Inc (TBRG) Stock Forecast & Price Target

TruBridge Inc. has demonstrated strong financial performance, with Patient Care gross margins increasing to 59.6%, reflecting a significant improvement attributed to cost rationalization and unexpected non-recurring revenues. The company reported a 5% year-over-year organic revenue growth within its Financial Health and Patient Care segments, showcasing effective operational execution, particularly following the successful offshoring initiatives. Furthermore, with an increased revenue estimate for FY25 from $349 million to $353 million, the company is positioned for continued growth driven by enhanced efficiencies and expanding client acquisition.

TruBridge Inc. is experiencing a significant decline in bookings across its business segments, with Financial Health and Patient Care bookings down 40% and over 50% year-over-year, respectively, indicating a troubling trend in demand for its services. Although the company's balance sheet has improved with leverage decreasing to 3x, the revenue guidance for the first quarter of 2025 is projected to fall 1% below consensus expectations, contributing to a negative outlook. Furthermore, the anticipated delay of Q4 deals into the latter half of the year raises concerns about the company's ability to maintain investor confidence and adapt to potential policy changes impacting its stock performance.