Raymond James Starts Definitive Healthcare Corp (DH) at Market Perform

Raymond James analyst Brian Peterson initiates coverage on Definitive Healthcare Corp (NASDAQ: DH) with a Market Perform rating.

The analyst comments "We are initiating coverage on Definitive Healthcare (DH) with a Market Perform rating, with an impressive fundamental backdrop reflected in the stock’s ~50% surge since its IPO price. Positively, we believe the company sits at the forefront of multiple secular tailwinds, particularly the proliferation of data-driven go-to-market models and increased complexity around the healthcare ecosystem. Definitive Healthcare’s domain expertise, wealth of data sources, cleansing and linking capabilities, and ability to facilitate multiple use cases through the platform (beyond just sales and marketing) should drive durable 20%+ revenue growth for the foreseeable future. Layering on an EBITDA margin profile in the 45% range, it’s easy to see why investors could view shares as an elite vertical software story. While we share that opinion, we would encourage investors to wait for a better entry point, particularly given the valuation at ~33x our 2022 revenue estimate (and ~110x FCF)."

For an analyst ratings summary and ratings history on Definitive Healthcare Corp click here. For more ratings news on Definitive Healthcare Corp click here.

Shares of Definitive Healthcare Corp closed at $45.31 yesterday.

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