Shares of Health Catalyst Inc.
ran up 5.0% in afternoon trading Monday, after the Wall Street analysts who started coverage of the health data and analytics company were unanimously bullish. The company went public on July 25 at an initial public offering price of $26. Since closing that day at $39.17, the stock has now rallied 14%. In comparison, the Renaissance IPO ETF
has shed 6.1% over the same time and the S&P 500
has declined 2.6%. All 7 analysts surveyed by FactSet who started covering Health Catalyst have the equivalent of buy ratings, while the average price target of $50.67 is 14% above current levels. Analyst Anne Samuel at J.P. Morgan, who initiated the company at overweight with a $50 stock price target, said Health Catalyst has less than 5% penetration of an $8 billion addressable market, “leaving significant runway for growth.” SunTrust Robinson Humphrey’s Sandy Draper started the company at buy with a $53 stock price target, citing an expected “long runway for growth,” reinforced by an attractive revenue mix shift that should help improve gross margin as revenue grows.
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