TruBridge Inc (TBRG) Stock Forecast & Price Target

TruBridge Inc has demonstrated significant improvement in its financial performance, with Patient Care gross margins increasing by 460 basis points year-over-year to 59.6%, driven by strategic cost rationalization and strong non-recurring revenue. The company's Financial Health segment, previously known as Revenue Cycle Management, recorded a 5% organic revenue growth year-over-year, alongside a notable gross margin increase of 250 basis points to 49.5%, attributed to successful offshoring initiatives. Additionally, TruBridge's expansion efforts in the 200-400 bed market are expected to bolster bookings and revenue, supporting an upward revision of their FY25 revenue estimate from $349 million to $353 million.

TruBridge Inc. is experiencing significant declines in bookings across its key segments, with Financial Health bookings decreasing by 40% year-over-year and Patient Care bookings falling over 50% year-over-year, reflecting broader challenges within the healthcare solutions market. Additionally, the 1Q25 revenue guidance is projected to be 1% below consensus, which raises concerns about the company's ability to meet market expectations. Although management anticipates future growth from slipped deals, the current outlook remains pressured by investor apprehension regarding the overall trajectory of the business.