HCAT inventory slips as RBC Capital Markets downgrades citing hospital headwinds (NASDAQ:HCAT)

Well being Catalyst, Inc. (NASDAQ:HCAT) dropped ~7% pre-market Tuesday after RBC Capital Markets lowered its ranking on the healthcare software program firm and lowered its value goal to $9 from $19 per share in response to challenges confronted by the hospital business.

Hospital shares crashed on Friday after the Q3 2022 outcomes of Tenet Healthcare (THC) and HCA Healthcare (HCA) upset buyers. South Jordan, Utah-based HCAT offers knowledge and analytics options to healthcare organizations.

“….outcomes from hospitals that reported Q3 outcomes so far present the challenges suppliers are dealing with don’t seem like abating,” RBC analysts led by Sean Dodge wrote, downgrading Well being Catalyst (HCAT) to Sector Carry out from Outperform.

Nonetheless, the analysts stay optimistic in regards to the firm’s aggressive place and its potential to profit from long-term structural tailwinds in healthcare, such because the shift to value-based care and rising prices.

Nonetheless, citing HCAT’s administration commentary and steering throughout the Q2 replace, Dodge and the workforce see slower near-term income progress and an extended path for the corporate to attain sustained profitability.

Wall Avenue has remained bullish on downgrading Well being Catalyst (HCAT) inventory, with a mean ranking of Purchase from analysts consistent with Searching for Alpha Creator rankings. Nonetheless, Searching for Alpha’s quant system, which constantly beats the market, rated HCAT as a Robust Promote.