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Citizens JMP initiates Performant Healthcare stock with Market Outperform rating

Published 10/07/2025, 09:12
Citizens JMP initiates Performant Healthcare stock with Market Outperform rating
PHLT
0.00%

Investing.com - Citizens JMP initiated coverage on Performant Healthcare Inc (NASDAQ:PHLT) with a Market Outperform rating and a price target of $8.00. The stock, currently trading at $4.28, has shown impressive momentum with a 70% surge over the past six months. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 2.56.

The research firm projects Performant Healthcare will deliver the fastest profit growth in its healthcare technology and services coverage universe, with adjusted EBITDA estimates of $9.5 million for 2025 (up 117% year-over-year), $21.0 million for 2026 (up 121%), and $30.0 million for 2027 (up 43%). This growth trajectory aligns with InvestingPro analysis, which indicates strong revenue growth of 11.76% and two analysts revising earnings estimates upward for the upcoming period.

Citizens JMP’s 2025 and 2026 adjusted EBITDA estimates exceed the current consensus expectations of $9.3 million and $18.5 million, respectively, with the firm modeling an adjusted EBITDA compound annual growth rate of 78% from 2025 to 2027.

The $8.00 price target is based on applying a 30x multiple to the firm’s 2026 adjusted EBITDA estimate, with PHLT recently trading at 35.6x and 16.1x the 2025 and 2026 estimates.

Citizens JMP justifies the multiple based on Performant Healthcare’s scarcity value, projected profit growth, potential for longer-term margin improvement, and the favorable secular backdrop for payment integrity programs under the current Presidential Administration.

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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