ACCD - Accolade: Mixed Guidance (Rating Downgrade)

2024-06-28 07:15:57 ET

Summary

• Accolade's full-year guidance was mixed, notwithstanding a Q1 FY 2025 results beat driven by a favorable timing factor.
• ACCD sees its revenue growth slowing from +14% last year to +13% in the current fiscal year, but its 3.7% FY 2025 EBITDA margin guidance was above expectations.
• My rating for Accolade is downgraded from a Buy to a Hold, after considering the company's outlook in light of its updated guidance.

Elevator Pitch

I have a Hold investment rating for Accolade, Inc. ( ACCD ) stock. My prior April 5, 2024 write-up drew attention to Accolade's latest corporate developments like the addition of new partners....

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