Definitive Healthcare falls as IPO banks tap the brakes

Definitive Healthcare

11/10/2021 20:05

** Definitive Healthcare Corp  DH.O  shares down 8.9% at
$41.26 on Mon as a bevy of analysts at banks that worked on
cloud software firm's IPO issue mostly neutral ratings
    ** DH shares on Sept 15 opened at $37.25 vs $27 IPO price,
and traded to as high as $50.30 days later  urn:newsml:reuters.com:*:nL4N2QH3LY
    ** JP Morgan starts coverage at "neutral" with $47 PT
    ** DH stands out "as the clear leader" in providing broad
and detailed healthcare data and analytics, JPM says in note,
adding co has "impressive platform" offering over a dozen
modules
    ** But JPM points to DH's stock trading at 2022 EV/sales
multiple of 34.7x, already a premium to its two closest peers,
ZoomInfo Technologies Inc  ZI.O  at 27.5x and Veeva System
 VEEV.N  at ~21x
    ** Credit Suisse initiates at "neutral" with $50 PT, saying
DH operates "defensible business model" that's difficult to
replicate
    ** Co has attractive growth prospects, CS analysts say in
note, but strong post-IPO move in the stock caps valuation
upside potential
    ** Other neutral equivalent ratings include: Goldman Sachs
("neutral"), Morgan Stanley ("equal-weight"), Deutsche Bank
("hold")

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))