Health Catalyst is back in focus after analysts revised fair value from about US$2.10 to roughly US$1.83 per share, which points to a more cautious stance on the stock. Recent research has shifted from earlier optimism with price targets in the US$2 to US$3 range to current levels closer to US$1.80, as analysts weigh execution risks around churn, divestitures and the durability of growth in its health technology offerings. In this article, you will see how these changing targets fit into the broader Health Catalyst story and what to watch as the narrative evolves.
Stay updated as the Fair Value for Health Catalyst shifts by adding it to your watchlist or portfolio . Alternatively, explore our Community to discover new perspectives on Health Catalyst.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Citi has kept a Neutral stance on Health Catalyst while adjusting its targets, which signals that some analysts still see a case for staying engaged with the stock rather than stepping away entirely.
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Earlier in the summer, both Citi and Wells Fargo lifted their price targets, citing sector level factors and the pending Vitalware sale, which highlighted potential value in Health Catalyst as it reshaped its portfolio.
🐻 Bearish Takeaways
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Canaccord shifted Health Catalyst to Hold from Buy and reduced its price target from US$3 to US$1.80 as it flagged uncertainty around churn and down sell risk for the data operating system clients.
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Canaccord also questioned whether further divestitures might be needed, which puts more focus on execution risk as Health Catalyst works through its current transformation.
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Citi cut its target from US$2.50 to US$2 after Q2, which reinforces a more cautious view on valuation and the balance between growth ambitions and the transformation underway.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 1 risk for Health Catalyst. See which could impact your investment.
How This Changes the Fair Value For Health Catalyst
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Fair value has been reduced from about US$2.10 to roughly US$1.83 per share.
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Revenue growth is now modeled as a steeper contraction, moving from roughly 8.95% to about 14.10%.
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Net profit margin has been nudged higher from about 6.69% to roughly 7.31%.
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Future P/E has shifted from about 15.80x to roughly 16.73x.
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The discount rate has risen from about 10.54% to roughly 11.30%.
Never Miss an Update: Follow The Narrative
Narratives link Health Catalyst's business story to a financial forecast and fair value, and they refresh as new data and research come through. They help you see how product moves, contracts and funding trends connect to the numbers analysts are using.
Head over to the Simply Wall St Community and follow the Narrative on Health Catalyst to stay up to date on:
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How Health Catalyst is leaning into AI enabled applications, proprietary data assets and cross selling into its client base to support margin improvement.
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The impact of Ignite platform migrations, cost restructuring and the downsizing of lower margin services on future revenue mix and profitability.
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Key risks such as client spending cuts, funding pressure on not for profit health systems, weaker net retention and the decision to step back from aggressive 2028 growth targets.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include HCAT .
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