Needham Reiterates Buy Rating on Accolade Inc. (ACCD)
Needham analyst Ryan MacDonald reiterated a Buy rating and $8.00 price target on Accolade Inc. (NASDAQ: ACCD).
The analyst commented: "We reiterate our Buy rating on ACCD ahead of 2Q25 earnings. Despite strong results in 1Q25, management chose to proactively derisk its profitability targets by reducing marketing spend allocated to usage-based revenues (Plushcare, VPC, EMO and partner services), which ultimately led to a lower FY25 topline outlook. Given the pullback, we believe topline upside potential is likely muted, but given the broader trend in healthcare of higher utilization, the company could see some organic benefit. Regardless, we think focus and execution on the bottomline will be rewarded, and given the company's historical track record of beats, we believe the company will likely outperform on cost-cutting initiatives. As a result, we remain buyers of this scaling profitability story."
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Shares of Accolade Inc. closed at $3.75 yesterday.