Wells Fargo Raises PT on Health Catalyst, Inc. (HCAT); Maintains ‘Buy’ Rating

Health Catalyst, Inc. (NASDAQ:HCAT), having a share price under $10, strong hedge fund interest, and a low price-to-earnings ratio, ranks among the 11 Most Undervalued Cloud Stocks Under $10 According to Hedge Funds.

Wells Fargo Raises PT on Health Catalyst, Inc. (HCAT); Maintains ‘Buy’ Rating

A data center operator working on a rack of servers, emphasizing the company’s cloud services.

On July 1, 2025, Wells Fargo set its price target at $10 for Health Catalyst, Inc. (NASDAQ:HCAT), maintaining a ‘Buy’ rating. HCAT’s shares are currently trading at around $4, implying a significant upside as per the analyst.

The analyst believes that Health Catalyst, Inc. (NASDAQ:HCAT) is valued much lower than its peers, which sets the company up for future growth through consistent performance. The firm expects positive growth in the company’s bookings in the upcoming Q2, which is likely to boost investor sentiment.

Meanwhile, the company’s strong revenue visibility for 2025 is noted, along with an anticipated acceleration in its DOS client growth. Looking ahead, the analyst expects the company to improve its dollar-based retention rate, enhancing its customer loyalty and revenue base. Legislative uncertainties, on the other hand, are expected to be short-term concerns with minimal long-term impact. Lastly, the company’s EBITDA growth was also highlighted as a key reason for the optimistic outlook.

With Health Catalyst Ignite, a cloud-based data and analytics platform, Health Catalyst, Inc. (NASDAQ:HCAT) serves healthcare entities, enhancing clinical, financial, and operational results. It is included in our list of the best cloud stocks.

While we acknowledge the potential of HCAT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HCAT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.