Health Catalyst stock price target lowered to $5 at Canaccord on growth concerns

Investing.com - Canaccord Genuity has reduced its price target on Health Catalyst Inc. (NASDAQ:HCAT) to $5.00 from $9.00 while maintaining a Buy rating on the healthcare technology company. The stock currently trades at $3.65, having gained over 11% in the past week despite being down 48% year-to-date.

The significant price target reduction represents a 44% decrease from Canaccord’s previous valuation, reflecting adjusted expectations for the provider-focused technology company. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, though five analysts have recently revised their earnings expectations downward.

Canaccord’s new target is based on a 9.3x multiple applied to its updated 2026 estimated adjusted EBITDA of $49.6 million, down from the previous 14.1x multiple.

The firm noted that the reduced multiple represents a 25% discount to Health Catalyst’s peer group, which trades at approximately 12.4x 2026 estimated EBITDA, excluding high and low outliers.

Canaccord justified the discount by stating it is "warranted until Health Catalyst regains a track record of meeting expectations and progresses toward double-digit revenue growth."

In other recent news, Health Catalyst reported a significant earnings per share (EPS) miss in its Q2 2025 results, with an EPS of -$0.59 compared to the forecasted $0.04. Despite a minor revenue beat, the market’s reaction to the earnings surprise of -1575% was negative. Piper Sandler downgraded Health Catalyst’s rating from Overweight to Neutral, citing growth concerns and lowering the price target from $8.00 to $4.00. This downgrade was influenced by disappointing first-half 2025 bookings and a reduction in revenue guidance for the calendar year 2025. Wells Fargo also reduced its price target on Health Catalyst to $6.00 from $10.00, maintaining an Overweight rating, as clients shifted from bundled software to lower-priced modular solutions. Evercore ISI, however, raised its price target to $4.00 from $3.00, maintaining an "In Line" rating, following meetings with Health Catalyst management. These developments reflect varied analyst perspectives on the company’s current challenges and future prospects.

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