BTIG launched coverage of Definitive Healthcare (NASDAQ:DH) with a “buy” rating and $7 target price. The stock closed at $4.44 on September 16.
Definitive Healthcare is one of the industry’s most comprehensive data collection and analytics platforms that supports bio-pharma, life sciences, health systems, med-tech, and the broad healthcare eco-system. The largest portion of the company’s business supports new drug launches, and clinical trial efforts, for bio-pharma and life sciences companies.
“While the stock has come under pressure over the past ~3 years our view is that bio-pharma R&D and revenue growth are starting to pick back up, we like how fund-raising efforts are improving for biotech, and CMS wants the vast majority of Medicare members in value-based or risk deals by 2030,” writes analyst David Larsen. “Furthermore, we like the relatively high margins of [Definitive Health], when compared to the HCIT sub-sector, [Definitive Health] generates a lot of FCF, consensus expectations seem low to us, and the stock seems inexpensive
