Definitive Healthcare: Poor Near-Term Outlook, But New CEO May Change Things

(8min)

Summary

  • DH remains a hold rating due to its poor near-term outlook and recent results.
  • 2Q24 results show decelerating growth, client count decline, and an elongated sales cycle.
  • New CEO Kevin Coop could be a game changer, but there is no reason to invest in DH at this point.

Close-up Shot of a Doctor"s Hand Pointing on Brain Scan Images on Digital Tablet

Tom Werner

Investment summary

My previous investment thought on Definitive Healthcare (NASDAQ:DH) (published in June) was a hold rating because of the poor near-term outlook, which I expected to be heavily pressured by the weak macro environment. I was also

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I focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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