- Truist named IT-driven health services companies Accolade ( NASDAQ: ACCD ) and Privia Health Group, Inc. ( PRVA ) as its favorites in launching coverage in the Healthcare IT/Digital Health space, citing a long-term positive trend.
- “….we believe the digital health industry is here to stay as U.S. healthcare is ripe for disruption,” the analysts led by Jailendra Singh wrote, noting the opportunities to cut wasteful expenditure in healthcare, which accounts for 20% of U.S. GDP.
- “And often, digital health is the answer,” Truist argued, pointing to growing interest in cutting back costs related to non-value adding activities such as administrative complexities, errors, and ineffective work processes.
- The analysts noted that some companies offer limited fundamental upside amid macro concerns and share appreciations driven by M&A chatter.
- However, “selective attractive investment opportunities still exist,” the team added, categorizing PRVA, ACCD, agilon health ( AGL ), Progyny, Inc. ( PGNY ), and R1 RCM Inc. ( RCM ) as companies with fundamental-driven buy-rated themes.
- Teladoc Health ( TDOC ), Hims and Hers ( HIMS ), Cano Health ( CANO ), GoodRx ( GDRX ), NextGen Healthcare ( NXGN ), and American Wel ( AMWL ) were among firms with purely fundamentally driven Hold ratings.
- Trusit issues a Hold rating and projects the lowest upside for 1Life Healthcare ( ONEM ) which in July agreed to be acquired by Amazon ( AMZN ). The $3.9B deal is currently under regulatory scrutiny.
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Accolade, Privia among favorites as Truist launches coverage on digital health