Q: What needs to happen to get VHI back on track..It’s been exceptionally weak!
5i Research Answer:
VHI is a software name for the healthcare sector, and it has seen weakness alongside the broader software industry. Recent earnings were somewhat weaker than expected, and due to higher integration costs, this caused some near-term uncertainty, and analyst estimates trended lower. But, forward growth estimates are still quite strong, and margins are expanding. We continue to like the name, but we feel that a sentiment shift in software and better future earnings will be needed to move the name again.