Health Catalyst stock downgraded by Cantor Fitzgerald amid revenue concerns

Investing.com - Health Catalyst Inc. (NASDAQ:HCAT) stock rating was downgraded by Cantor Fitzgerald from Overweight to Neutral on Friday, with its price target significantly reduced to $4.00 from $9.00. The stock, currently trading at $3.69, is near its 52-week low of $3.48 and appears undervalued according to InvestingPro analysis.

The downgrade follows Health Catalyst’s second-quarter 2025 earnings call, which revealed a deteriorating revenue outlook that Cantor Fitzgerald believes faces multi-year headwinds. While the company maintained 4.88% revenue growth over the last twelve months, nine analysts have recently revised their earnings expectations downward.

Despite management’s ability to maintain its 2025 EBITDA guidance while substantially reducing revenue forecasts, Cantor Fitzgerald expressed concern that the current macroeconomic environment is too challenging to support growth for the healthcare data analytics company.

The research firm acknowledged that Health Catalyst’s management team consists of strong operators, as evidenced by their ability to maintain earnings guidance despite revenue challenges.

Cantor Fitzgerald also noted that Health Catalyst’s management has taken a potentially conservative view of the provider legislative, revenue, and spending environment, which appears more pessimistic than the firm’s recent provider conversations and sentiment survey results.

In other recent news, Health Catalyst announced that CEO Dan Burton will step down from his role effective June 30, 2026, after 15 years of leadership. Cantor Fitzgerald reiterated its Overweight rating on Health Catalyst, maintaining a price target of $9.00, and expressed optimism about the company’s sales pipeline through 2025 and beyond. Meanwhile, BTIG downgraded Health Catalyst from Buy to Neutral, citing concerns over potential reductions in healthcare coverage due to legislative changes that could impact Medicaid and other plans.

Shareholders of Health Catalyst approved all proposals at the company’s annual meeting, including the election of two directors, Duncan Gallagher and Dr. Jill Hoggard Green, for three-year terms. Stifel maintained a Hold rating with a price target of $5.50, highlighting the firm’s revenue growth and EBITDA targets for 2025, though noting risks related to government funding and deal closures. The analysts pointed out the importance of closing late-stage deals in Health Information Exchange and life sciences, as well as data licensing agreements related to the Carevive acquisition. These developments provide various perspectives on Health Catalyst’s current and future positioning in the market.

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