Here's Why Accolade Shares Are Trading Higher Today

Needham analyst Ryan MacDonald reiterated a Buy rating on Accolade, Inc 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.

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