- Needham analyst Ryan MacDonald reiterated a Buy rating on Accolade, Inc (NASDAQ:ACCD) with a price target of $12.
- Following a problematic 4QF22, he noted that Accolade bounced back nicely in 1QF23 as the company beat management’s initial outlook for FY23 revenue and adjusted EBITDA.
- While early in the selling season, ACCD won more new business in 1QF23 than 1QF22, noting improved win rates and stable pricing.
- ACCD is seeing an increase in RFP activity as the uncertain macro environment has increased focus on healthcare cost reductions, he pointed out.
- Additionally, ACCD is making excellent progress towards its goal of hitting adjusted EBITDA breakeven in FY25, notably as the company announced a 4% headcount reduction early in 2QF23 to streamline the organization.
- ACCD appears to be on the road to recovery, and he believes 1QF23 represents a solid first step.
- Canaccord Genuity analyst Richard Close maintained Accolade with a Buy and cut the price target from $17 to $12.
- Goldman Sachs analyst Cindy Motz reiterated Accolade with a Buy and slashed the price target from $15 to $13.
- Price Action: ACCD shares traded higher by 19.3% at $8.83 on the last check Friday.
FedEx Corporation (NYSE: FDX), a company that some consider a bellwether for the markets and the economy, reported a second-quarter beat after the close on Tuesday.