Berenberg starts with 'buy' on Accolade citing strong growth next year

Accolade

19/01/2022 16:11

** Berenberg assumes coverage of healthcare technology firm
Accolade Inc  ACCD.O  with a "buy" rating and $35 PT, on strong
Q3 results and potential for greater-than-expected growth in the
next fiscal year
    ** Shares of ACCD are down marginally after having risen
nearly 4% earlier in the day, brokerage's PT represents an
upside of 93.6% to stock's last close
    ** Company in January had issued preliminary guidance of 25%
revenue growth y-o-y in 2023, and said its expert medical
opinion business had taken a hit from fewer medical procedures
in Q3  urn:newsml:reuters.com:*:nGNX5BC8mT
    ** "We believe there is upside to ACCD's FY23 revenue
guidance as management assumes current procedural volume will
hold, but it should improve over the next nine months as
hospital capacity normalizes"- Berenberg
    ** Brokerage says improvement in procedure volumes would
boost co's expert medical opinions unit, adding that this growth
story is still underappreciated by the market
    ** Stock has fallen 67% in the past twelve months

 (Reporting by Amruta Khandekar)
 ((Amruta.Khandekar@thomsonreuters.com;))