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.
“In 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.
