BofA Securities reiterates Buy rating on Definitive Healthcare stock

Published 08/08/2025, 13:48
BofA Securities reiterates Buy rating on Definitive Healthcare stock

Investing.com - BofA Securities has reiterated its Buy rating and $4.50 price target on Definitive Healthcare Corp (NASDAQ:DH), currently trading at $3.97, following the company’s second-quarter 2025 results. According to InvestingPro data, the stock has shown strong momentum with a 6.15% gain in the past week, despite its volatile nature.

Definitive Healthcare reported revenue and EBITDA above both BofA’s estimates and consensus forecasts, exceeding the high end of its prior guidance. The company increased its 2025 revenue guidance by $1.5 million at the midpoint, closely matching its second-quarter beat of $1.6 million. With an impressive gross profit margin of 83.4% and an overall "GOOD" financial health score from InvestingPro, the company demonstrates strong operational efficiency.

The healthcare commercial intelligence firm is showing early signs of progress with modest improvements in renewal rates and its highest retention rate since the second quarter of 2024. These improvements suggest the company’s efforts to create a more efficient sales force and simplify its go-to-market strategy are beginning to yield results.

BofA expects continued near-term pressures in the macro environment throughout 2025 and into 2026 but remains encouraged by ongoing initiatives to drive improvements at Definitive Healthcare.

The $4.50 price target is based on 10.0x CY26E EBITDA, rolled forward from the previous valuation of 11.5x CY25E EBITDA.

In other recent news, Definitive Healthcare Corp reported its second-quarter 2025 earnings, which surpassed analyst expectations. The company achieved an earnings per share (EPS) of $0.07, exceeding the projected $0.05. Additionally, Definitive Healthcare’s revenue reached $60.8 million, surpassing the anticipated $59.18 million. These recent developments highlight the company’s strong financial performance. The earnings report indicates that the company is performing better than analysts had forecasted. This performance may influence future analyses and projections from investment firms. The company’s financial results are likely to be a focus for investors assessing its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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