Definitive Healthcare Faces Rising Competitive Pressures, BofA Says
Definitive Healthcare (DH) is facing intensifying competitive pressures as healthcare data market becomes increasingly commoditized, BofA Securities said in a Monday note.The report said the data market is also partially accessible via AI, which is likely to drive pricing compression and weakening retention, particularly in the Life Sciences business."While shares of DH are currently cheap and cash flow is positive, we see elevated risk for customer losses and believe continued investment is a requirement to reignite revenue growth," the note said.BofA downgraded the stock to underperform from buy, and cut its price objective to $0.70 from $3.50 as it lowered its revenueand free cash flow expectations.Price: $0.73, Change: $+0.07, Percent Change: +10.30%
