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On Thursday, Canaccord Genuity revised its price target on HealthStream (NASDAQ:HSTM) shares, reducing it to $29 from the previous $30, while retaining a Hold rating on the stock. The adjustment was based on a valuation multiple of 10.5 times the company’s expected adjusted EBITDA for the year 2026. This multiple is consistent with the average of technology companies focused on healthcare providers, excluding the highest and lowest outliers. According to InvestingPro data, the company currently trades at a P/E ratio of 44.31x and is trading near its 52-week low of $25.84, with current analysis suggesting slight overvaluation relative to its Fair Value.
HealthStream, which specializes in workforce and provider solutions for the healthcare industry, is currently trading at approximately 9.7 times Canaccord Genuity’s estimated 2026 adjusted EBITDA. The firm’s analyst, Richard Close, noted that a potential increase in the company’s revenue growth could provide grounds for a higher valuation multiple compared to its present level. InvestingPro analysis reveals the company maintains strong financial health with more cash than debt on its balance sheet, and has demonstrated steady revenue growth of 3.36% over the last twelve months. Subscribers can access 8 additional key ProTips and comprehensive valuation metrics in the Pro Research Report.
The new price target reflects Canaccord Genuity’s assessment of HealthStream’s future financial performance and market position. The Hold rating suggests that the firm advises investors to maintain their current position in the stock without making additional purchases or sales.
HealthStream has not publicly responded to Canaccord Genuity’s updated price target and rating. The company’s stock performance in the coming days will be observed by investors to see how it aligns with the firm’s expectations and market analysis.
The financial markets will continue to monitor HealthStream’s stock as the company progresses towards its 2026 financial goals and works to achieve the revenue acceleration mentioned by Canaccord Genuity. Investors will likely consider these insights when making decisions regarding their positions in HealthStream shares.
In other recent news, HealthStream reported its Q1 2025 earnings, revealing a slight miss on both earnings per share and revenue expectations. The company posted an EPS of $0.14, which was below the projected $0.15, and reported revenues of $73.5 million, falling short of the anticipated $74.89 million. HealthStream has revised its 2025 revenue guidance to a range of $297.5 million to $303.5 million. Despite these financial results, the company remains focused on product innovation and workforce solutions, with a particular emphasis on mandatory healthcare training solutions. In another development, HealthStream’s Board of Directors has authorized a stock repurchase program of up to $25 million, allowing the company to buy back shares through various methods until May 31, 2026, or until the funds are fully used. The company’s strategic focus remains on supporting healthcare professionals and navigating the challenges posed by macroeconomic uncertainties and funding cuts in the healthcare sector. Additionally, HealthStream is exploring merger and acquisition opportunities to strengthen its market position.
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