On April 14, 2023, Definitive Healthcare Corp. (NASDAQ:DH) found itself in the limelight as Bloomberg reported it had been given a consensus recommendation of “Hold” by seven research firms covering the stock. While three research analysts rated the stock with a hold rating, two have given a buy rating to the company.
Definitive Healthcare Corp. is a healthcare data and analytics provider catering to over 2,500 health systems, hospitals, and healthcare organizations across the United States. The firm provides predictive insights on disease outbreaks, trends in population health management, and other key data points that enable healthcare providers to improve patient outcomes while reducing their costs.
The average 12-month price target among brokers who have updated their coverage on Definitive Healthcare Corp. stands at $15.71. This signals cautious optimism about the stock’s performance in the near future.
It is worth noting that since its inception nearly a decade ago, Definitive Healthcare Corp has grown into an industry leader with accolades such as inclusion in Inc’s Fastest Growing Private Companies list for six years running and recognition from Modern Healthcare as one of the Best Places to Work in Healthcare.
In terms of financials, Definitive Healthcare Corp’s revenue has steadily increased year over year and surpassed its projected revenue goals for Q1 2023 despite headwinds created by the COVID-19 pandemic.
It remains to be seen what catalysts will propel this promising company forward or drag it downwards – this is where investors keenly focus considering rewards are always commensurate with risks taken when investing.
Expert Opinions Mixed on Definitive Healthcare Corp.’s Market Performance
On April 14, 2023, several renowned equities research analysts offered their expert opinions on Definitive Healthcare Corp. Credit Suisse Group lowered the target price for the company from $19 to $15 with a “neutral” rating in their recent report. Morgan Stanley also weighed in by lowering the target price from $18 to $17 and providing an “overweight” rating in their research note published on February 28th. Meanwhile, Needham & Company LLC maintained a “buy” rating and set a target price of $15 for Definitive Healthcare’s shares in their report released on February 24th.
Despite this mixed reception from equities research analysts, shares of DH were valued at $11.14 upon opening on Friday. The company boasts impressive liquidity ratios as evidenced by its quick and current ratios of 3.12 each but also carries some debt at a debt-to-equity ratio of 0.17. With a 50-day moving average of $11.51 and a 200-day moving average of $12.32, investors may choose to remain cautious given the stock’s volatility over the past twelve months which has seen prices fluctuate between $9.42 and an eye-popping high of $30.11.
Nevertheless, Definitive Healthcare remains an attractive investment option with a market capitalization value exceeding one billion dollars ($1.20 billion). While its P/E ratio currently stands at -111.39—a considerable negative value—the P/E/G ratio appears more promising at around 44; beta shows a degree of volatility but slotted comfortably within acceptable limits at just .49.
Definitive Healthcare Corp.’s primary subsidiary provides healthcare commercial intelligence solutions to clients all over the United States with information on healthcare providers’ various activities up for sale in the market—product development, go-to-market planning, sales execution or marketing strategy refinement.
Therefore, five years from now, it wouldn’t be surprising if the current disparities in expert opinions surrounding Definitive Healthcare Corp. became irrelevant with the company’s strategic direction, innovative approach to health commercial intelligence, and quality market performance of their products solidifying their market position as an industry leader.
