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Investing.com - Evercore ISI raised its price target on Health Catalyst Inc. (NASDAQ:HCAT) to $4.00 from $3.00 on Thursday, while maintaining an "In Line" rating on the healthcare data analytics company. According to InvestingPro data, the stock has shown remarkable momentum with a 20.59% gain over the past week, trading at $3.69.
The price target increase follows Evercore ISI’s meetings with Health Catalyst management at the Health Catalyst Analytics Summit in Salt Lake City. The firm noted significant behind-the-scenes activity as the company continues to roll out its Ignite platform and evolve its portfolio to better meet client needs in the current environment. The company has maintained steady growth, with revenues reaching $316.09M in the last twelve months and a 5.55% year-over-year increase.
Evercore ISI highlighted Health Catalyst’s efforts to right-size its cost structure, which prompted the firm to raise its EBITDA estimates while keeping revenue projections unchanged. The analyst expects Health Catalyst to achieve approximately $60 million in EBITDA by 2026. InvestingPro analysis shows the company maintains a GOOD financial health score, suggesting effective management of its resources. Get detailed insights and more exclusive ProTips with an InvestingPro subscription.
The new $4 price target represents a multiple of 6 times the company’s projected 2026 EBITDA, reflecting the improved margin profile expected from the current cost-cutting program.
Despite the higher price target, Evercore ISI maintained its "In Line" rating on Health Catalyst shares, citing the "still-challenging demand environment" facing the company.
In other recent news, Health Catalyst has reported its Q2 2025 earnings, revealing a significant earnings per share (EPS) miss. The company posted an EPS of -$0.59, sharply contrasting with the forecast of $0.04, which resulted in a negative market reaction. Despite this, Health Catalyst managed a minor revenue beat, though specific revenue figures were not disclosed. Additionally, Piper Sandler downgraded Health Catalyst’s stock rating from Overweight to Neutral, reducing the price target from $8.00 to $4.00. This downgrade was attributed to disappointing first-half 2025 bookings and a reduction in revenue guidance for the calendar year 2025, linked to lower net revenue retention and increased customer churn. Wells Fargo also adjusted its price target for Health Catalyst, lowering it from $10.00 to $6.00, while maintaining an Overweight rating. The firm cited a shift in client preferences from bundled software to more affordable modular solutions, likening it to consumer cable unbundling. This trend is expected to exert revenue pressure on Health Catalyst through mid-2026.
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