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Piper Sandler said it would be buyers of Evolent Health (NYSE:EVH), Omnicell (NASDAQ:OMCL) and Health Catalyst (NASDAQ:HCAT) moving into 2024 and its annual healthcare conference next week, according to a recent note.
The firm views Evolent as the “dominant player” in the value-based specialty care management space, which it sees as a “large, growing and underpenetrated” market. Piper added that it thinks “favorable” Performance Suite claims development could results in upside to its adjusted EBIDTA estimates for the second half of 2024.
Piper, meanwhile, sees Omnicell as the leader in hospital pharmacy innovation and automation. It believes its 2024 estimates “represent the floor for this cabinet cycle” and thinks newer products like XR2 and IVX can support a return to mid-single digits product revenue growth in 2025. It also sees Omnicell announcing a new automated dispensing cabinet product by the end of 2026.
As for Health Catalyst, Piper regards the company as a “turnaround story poised to benefit from a combination of recent strategic and macro developments.” It also believes the company can capitalize on the improving end market to achieve double-digit revenue and adjusted EBITDA growth next year.
Piper rated all three stocks as overweight.
