Avondale analyst sees HealthStream growth beyond ICD-10

Richard Close at Avondale Partners has reaffirmed his buy rating and target price of $33.50 for HealthStream, saying that the workforce development company has multiple avenues for growth in addition to its ICD-10 training products. Revenue growth excluding ICD-10 has accelerated above 20 percent, Close said, and the company's other service lines should "foster growth and ease headwind of ICD-10 roll-off."

Shares of HealthStream (Ticker: HSTM) climbed almost 20 percent Tuesday after a better-than-expected Q2 earnings report, but year to date, they're down 20 percent.