What Happened:
Shares of healthcare software provider Health Catalyst (NASDAQ:HCAT) jumped 8.95% today after analyst Stan Berenshteyn of Wells Fargo upgraded the stock's rating from Equal-Weight (Hold) to Overweight (Buy) and raised the price target from $13 to $16. The target price implies a 30% upside to the current price. After the initial pop the shares cooled down to $12.4, up 4.85% from previous close.
What is the market telling us:
Health Catalyst's shares are very volatile and over the last year have had 60 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Health Catalyst is up 19.7% since the beginning of the year, but at $12.435 per share it is still trading 54.4% below its 52-week high of $27.26 from April 2022. Investors who bought $1,000 worth of Health Catalyst's shares at the IPO in July 2019 would now be looking at an investment worth $317.59.
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