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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.

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.

READ NEXT: 14 Cheap Transportation Stocks to Buy According to Analysts and 11 Best Mineral Stocks to Buy According to Hedge Funds.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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