Q: In light of the significant drop in price and the potential of its bottoming out, how would you now rate VitalHub Corp.
5i Research Answer:
The selloff has been extreme, and its Q4 results were decent, with a beat on both EPS and sales, crossing $100M in annual sales for the first time, with adjusted EBITDA up 48%, but the stock declined on gross margin compression. It still trades at a premium valuation of 30X forward earnings, and while its earnings have not been impacted by AI or competitive threats from AI yet, the market is attempting to price in this potential. We continue to like the long-term story here, but we would prefer to see momentum reverse more, with price reaching above $9 helping to signal a potential bottom.