Needham & Company Starts HealthStream (HSTM) at Buy

Needham & Company initiated coverage on HealthStream (NASDAQ: HSTM) with a Buy rating and a price target of $33. Analyst Scott Berg thinks industry trends will drive sales.

"We believe HealthStream uniquely benefits from two significant mega-trends; 1) the strong secular adoption rates within the Talent Management Enterprise Software subsector, and also 2) an environment that is increasingly regulated, requiring its products’ end users to evaluate competencies and train employees on a more frequent basis. We believe the combination of these two industry mega-trends is likely to drive sales further for a multi-year period. We believe the greatest near-term risk to be purely execution-related, and we therefore see a positive risk/reward scenario for investors," said Berg.

For an analyst ratings summary and ratings history on HealthStream click here. For more ratings news on HealthStream click here.

Shares of HealthStream closed at $28.06 yesterday.

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