peterschreiber.media/iStock via Getty Images Wells Fargo has added Health Catalyst ( NASDAQ: HCAT ) to its Q3 tactical ideas list, stating that it expects the company to address “lingering concerns over dilution risk” and return to double-digit topline growth next year. The investment bank noted that the stock was “hovering near our bear case scenario,” but that it expects the company to reiterate 2024 booking guidance and refinance its convertible debt “to reignite upward momentum in the stock.
” “Our thinking is that HCAT’s net cash cushion may allow management to either fully extinguish its debt or downsize a follow-on debt offering into conventional senior secured debt,” Wells Fargo said in a note. “This may be the best all-around solution: provide a bigger capital cushion and limit interest expense burden while avoiding dilution risks.” Wells Fargo has a price target of $13 on the stock, with an overweight rating.
More on Health Catalyst Health Catalyst: Stellar Earnings Growth Projected Health Catalyst, Inc. (HCAT) Q1 2024 Earnings Call Transcript Health Catalyst Non-GAAP EPS of $0.05 beats by $0.
02, revenue of $74.72M misses by $0.09M Health Catalyst Q1 2024 Earnings Preview Seeking Alpha’s Quant Rating on Health Catalyst.
