Needham Securities analyst Scott Berg is suggesting investors take a breath on HealthStream after the company's second-quarter earnings report and conference call. He has downgraded the stock (Ticker: HSTM) to 'hold' from 'buy' and wants to see a clearer growth narrative for parts of the business.
While the company's 2Q call detailed a core business that remains strong, potential early ICD-10 customer loss, the continued lack of visibility of declining ICD-10 related revenues, and an underperforming Patient Experience segment give us less confidence that the company can drive meaningful upside to our current growth estimates.
The South Carolina company that last year acquired Cool Springs-based MedSolutions has changed the combined venture's name to eviCore healthcare. The company, which announced the move at the AHIP conference being held at the Music City Center, now employs more than 3,000 people.
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