TruBridge Inc (TBRG) Stock Forecast & Price Target

TruBridge Inc. demonstrates a strong financial outlook supported by a significant increase in Patient Care gross margins, which rose by approximately 460 basis points year-over-year to reach 59.6%, attributed to effective cost rationalization and higher non-recurring revenue. The company's Financial Health segment, previously known as revenue cycle management, achieved a 5% organic revenue growth year-over-year, aided by successful cost management initiatives, resulting in gross margins of 49.5%. Moreover, enhanced execution and client acquisition, particularly in the 200-400 bed market, are expected to drive further revenue increases, prompting an upward revision of revenue estimates for FY25 from $349 million to $353 million.

TruBridge Inc. is experiencing significant challenges, evidenced by a notable decline in bookings across its business segments, with Financial Health bookings down 40% year-over-year and Patient Care bookings down over 50% year-over-year. Additionally, the first quarter of 2025 revenue guidance is 1% below consensus, further indicating a weaker financial outlook. Although management anticipates future closures from delayed deals, investor apprehension surrounding the company's current performance may exert downward pressure on the stock.