Analyst Craig Hettenbach named data and analytics company Definitive Healthcare a top pick, citing its strong business model and attractive entry point as health-care companies deal with longer selling cycles. Stock of DH is currently trading at 19.44 USD and up over 3% today.

So why could DH surge ?

As per analyst Craig Hettenbach, the company is highly profitable, distinguishing itself from other fast growing software companies that have low or negative margins,” he added.

Hettenbach has a $34 price target in his base case, implying about 80% upside from where shares ended Friday at $18.84. Shares are up more than 2% in Tuesday trading.

β€œIn this challenging macro environment, we view Definitive Healthcare as being in an enviable position to emerge stronger by leveraging its strong head start in data analytics, profitable model (28.7% adjusted EBITDA margin and 87.9% adjusted GM in 2022E), solid balance sheet (~$225mn in cash) and FCF generation ($64mn in 2022E) to further extend its lead through organic investment and M&A,” the note read.

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