DH - Definitive Healthcare slips on Baird downgrade

2023-07-24 13:00:06 ET

Definitive Healthcare ( NASDAQ: DH ) shares slipped 1.5% on Monday as investment firm Baird downgraded the healthcare software company, citing worries about data collection and "limited" intra-quarter visibility, among others.

Analyst Joe Vruwink lowered his rating on Definitive Healthcare ( DH ) shares to neutral from overweight, noting that the firm sees a "more balanced risk-reward" at current levels.

Vruwink also has a $13 price target on Definitive, which is supported by the stock trading at seven times sales and 33 times free cash flow over the next 12 months.

"Definitive is likely a beneficiary of an eventual better macro, but current conditions and longer enterprise sales cycles could make 2024E estimates for reacceleration harder to meet," Vruwink wrote in an investor note.

Definitive Healthcare ( DH ) is slated to host second-quarter results on August 3 after the close of trading. A consensus of analysts estimate the company will earn 5 cents per share on $61.1M in revenue.

Analysts are mostly bullish on Definitive Healthcare ( DH ). It has a BUY rating from Seeking Alpha authors , while Wall Street analysts rate it a BUY . Conversely, Seeking Alpha's quant system, which consistently beats the market, rates DH a HOLD .

More on Definitive Healthcare

• Definitive Healthcare: Leading The Healthcare Commercial Intelligence Market
• Definitive Healthcare: Weakness In Performance Is A Function Of Macro, Not Fundamentals

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