Health Catalyst Inc. (HCAT) PT Lowered to $3.75 at Stifel Following Modest Q3 Beat

Stifel analyst David Grossman lowered the price target on Health Catalyst Inc. (NASDAQ: HCAT) to $3.75 (from $4.50) while maintaining a Hold rating.

The analyst commented, "Modest 3Q revenue/EBITDA beat; 2025 guidance maintained (revenue -2% organic/EBITDA 13.2%/+30 new client adds/ low-90s DBR). Implies 4Q sequential revenue down 2-3% excluding $0.5mn-$1.0mn nonrecurring tech revenue (consensus flattish) and 18.2% 4Q EBITDA margins (consensus 19%)Maintaining annual guide despite 3Q beat; more indicative of non-recurring revenue timing than shifts in momentum.2026 revenue guide "few pts" lower than 2025; implies 2-3% y/y revenue declines (consensus flattish). Deflation from clients migrating to lower-cost Ignite platformRestructuring of lessprofitable ambulatory TEM's contractsMedicaid funding headwindsMost headwinds should anniversary mid-20262026 EBITDA guide modest y/y increase (~$50mn), with tailwinds from tech mix-shift, TEMs contract restructuring, headcount reductions (~9% of workforce) and offshoring partially mitigated by reinvestment.Absence of near-term catalysts reflected in multiple (5x 2026E EBITDA); however, actions repositioning business for growth (migration to lower-cost, more robust/flexible tech platform) and margin expansion (noted above) creates potential opportunity for those with longerterm perspective."

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