Analyst Initiates Coverage On Accolade, Says 'Differentiated In Growing Market'

Raymond James initiated coverage on Accolade Inc ACCD with an Outperform rating and a $15 price target.
Employers have increasingly added disconnected point solutions, which are generally under-used, lack a common IT platform, and have further convoluted an already-complex ecosystem, writes the analyst.
Related: Analysts Stay Bullish On Accolade Stock, Call Q3 Earnings Better Than Expected Amid Challenging Backdrop.
Accolade integrates an employer’s health benefits into a unified platform. Then it engages entire populations to minimize the employer’s healthcare costs, improve member health, and maximize the employer’s ROI from point solutions.
Raymond James writes that ACCD stands to benefit from being the only public navigator in an underserved market, with only 20% of employers currently using a navigation/advocacy solution.
Macroeconomic concerns and peak losses have recently clouded sentiment around the stock. However, investors will grow increasingly comfortable with the company as it approaches profitability and exhibits stability, says the analyst.
Price Action: ACCD shares are up 9.71% at $12.99 on the last check Thursday.

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