William Blair launched coverage of Change Healthcare (NASDAQ:CHNG) with an “outperform” rating. The stock closed at $13.50 on July 19.
Change Healthcare is a leading healthcare technology platform provider, offering data and analytics-driven solutions that help payers and providers improve outcomes across clinical, financial and patient-engagement domains.
Analyst Ryan Daniels writes that for fiscal 2020, he expects adjusted solutions revenue of $3.1-billion, adjusted EBITDA of $973.3-million and adjusted EPS of $1.82. For fiscal 2021, he forecasts adjusted solutions revenue of $3.2-billion, adjusted EBITDA of almost $1.1-billion, and adjusted EPS of $1.83.
“We believe Change Healthcare is well positioned to remain a leader in the healthcare information technology space,” he said, as a result of the following factors:
- Change Healthcare Is a leader in a large, growing, and important market.
- The company is a sophisticated organization, with significant scale and connectivity into client workflows.
- A full suite of modular and fully integrated solutions creates a flexible product offering.
- The company has a predictable financial model with strong margins and myriad growth drivers.
- The company also has a deep and experienced management team.
