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Deutsche Bank cuts Definitive Healthcare target to $7

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On Wednesday, Deutsche Bank adjusted its outlook on Definitive Healthcare Corp (NASDAQ:) by reducing its price target from $10.00 to $7.00, while maintaining a Hold rating on the stock. This change comes after the company reported its first-quarter results and revised its 2024 guidance downwards, citing macroeconomic challenges and internal restructuring as key factors for the adjustment.

Definitive Healthcare’s shares experienced a steep decline, dropping more than 30% in the morning trading session following the market’s open. The company has forecasted a year-over-year revenue growth of 1% to 4% for the fiscal year 2024, aiming for a range of $255 million to $261 million. This projection is a decrease from the previously guided growth of 5% to 7%. Additionally, the adjusted EBITDA guidance has been lowered to $81.5 million to $84.5 million, suggesting an EBITDA margin between 32.0% and 32.4%, compared to the former margin guidance of 31.9% to 32.7%.

The sluggish start to the year is largely attributed to extended sales cycles due to increased scrutiny on spending by new logo buyers, as well as significant disruptions in sales efforts caused by the company’s restructuring at the beginning of the year. Despite these challenges, Definitive Healthcare is focusing on improving operational efficiencies and expects to see an increase in operating leverage in sales and marketing by 300 to 400 basis points year-over-year.

The company has also indicated positive developments in customer retention, attributing this to consistent improvements in delivery and services. It now expects net dollar retention (NDR) to expand by 100 to 200 basis points by the end of the year, which would reverse the previously declining trend. However, the immediate market reaction to these announcements was negative, with the stock’s value falling by 31.0% on the day of the announcement.

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InvestingPro Insights

As Definitive Healthcare Corp (NASDAQ:DH) navigates through its restructuring and revised guidance for 2024, investors may find the latest data from InvestingPro to be of interest. The company, with a market capitalization of $1.14 billion, is trading at a price-to-book ratio of 1.32, which can be appealing to value investors looking for assets that are potentially undervalued compared to their book value. Despite a challenging macroeconomic environment, Definitive Healthcare has demonstrated resilience with a gross profit margin of 86.18% over the last twelve months as of Q1 2023, showcasing its ability to maintain profitability amidst cost pressures.

Two notable InvestingPro Tips for Definitive Healthcare include the expectation of net income growth this year and the company’s liquid assets exceeding its short-term obligations, indicating a stable financial position for the near term. These insights, coupled with analysts’ predictions that the company will be profitable this year, could provide a more nuanced perspective for investors considering the stock’s potential. For those interested in further analysis, InvestingPro offers additional tips on their platform, and users can utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Stock Markets

Comet fragment lights up sky over Spain and Portugal ‘like a movie’

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By Catarina Demony and Ana Cantero

LISBON (Reuters) – A bright comet fragment lit up the skies over parts of Spain and Portugal late on Saturday, according to the European Space Agency (ESA), with one Lisbon resident saying the dazzling display “felt like a movie”.

On Sunday morning, the ESA shared on X a video captured by its “fireball camera” of what it described as a “stunning meteor” over the skies of the western Spanish city of Caceres, near the Portuguese border.

But it later said it appeared to be a “small piece of a comet” and not a meteor, estimating it flew over Spain and Portugal at a speed of 45 km (28 miles) per second before burning up over the Atlantic.

“The likelihood of any meteorites being found is very low,” the ESA said.

In both countries, videos shot in several cities and towns went viral on social media, showing the object crossing the night sky at high speed and illuminating it in bright tones of blue and green.

The Spanish Calar Alto astronomical observatory also said a preliminary analysis by Andalusia’s Institute of Astrophysics revealed the object had a “cometary origin”.

During a concert in the Portuguese city of Barcelos, the object was filmed streaking across the sky as the singer performed. Another video showed the skies of Porto, Portugal’s second biggest city, turning bright for a few seconds.

Many contacted emergency services to report what happened. A spokesperson for the Spanish Emergency service 112, in Madrid, told Europa Press news agency it had received several calls.

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Lisbon resident Bernardo Taborda, 31, told Reuters he was walking around the city with friends when the sky suddenly turned bright green: “It almost looked like daylight … we all looked back and saw it.”

“It felt like a movie, we all looked at each other and we were stunned,” Taborda said. “It was amazing.”

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Helicopter carrying Iran’s President Raisi crashes in mountains, official says

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By Parisa Hafezi and Elwely Elwelly

DUBAI (Reuters) -A helicopter carrying Iranian President Ebrahim Raisi and his foreign minister crashed on Sunday as it was crossing mountain terrain in heavy fog, an Iranian official told Reuters, and rescuers were making their way to the site of the incident.

The official said the lives of Raisi and Foreign Minister Hossein Amirabdollahian were “at risk following the helicopter crash”, which happened on the way back from a visit to Iran’s border with Azerbaijan.

“We are still hopeful but information coming from the crash site is very concerning,” said the official, speaking on condition of anonymity.

The bad weather was complicating rescue efforts, the state news agency IRNA reported. The chief of staff of Iran’s army ordered all the resources of the army and the elite Revolutionary Guard to be put to use in the search and rescue operations.

State TV stopped all its regular programming to show prayers being held for Raisi across the country and, in a corner of the screen, live coverage of rescue teams deployed on foot in the mountainous area in heavy fog.

The rescue teams were expected to reach the site of the crash later on Sunday evening, state TV reported.

Raisi, 63, was elected president in 2021, and since taking office has ordered a tightening of morality laws, overseen a bloody crackdown on anti-government protests and pushed hard in nuclear talks with world powers.

In Iran’s dual political system, split between the clerical establishment and the government, it is the supreme leader rather than the president who has the final say on all major policies.

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But many have seen Raisi as a strong contender to succeed his 85-year-old mentor, Supreme Leader Ayatollah Ali Khamenei, who has strongly endorsed Raisi’s main policies.

Raisi’s victory in a closely managed election in 2021 brought all branches of power under the control of hardliners, after eight years when the presidency had been held by pragmatist Hassan Rouhani, who negotiated a nuclear deal with Washington.

However, Raisi’s standing may have been dented by widespread protests against clerical rule and a failure to turn around Iran’s economy, hamstrung by Western sanctions.

Raisi had been at the Azerbaijani border to inaugurate the Qiz-Qalaisi Dam, a joint project.

Interior Minister Ahmed Vahidi told state TV only that one of the helicopters in a group of three had come down in the incident, and that authorities were awaiting further details.

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Sean ‘Diddy’ Combs apologizes after video depicting attack on ex-girlfriend

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By Katharine Jackson

(Reuters) – Music mogul Sean “Diddy” Combs posted an apology to social media on Sunday, two days after the release of hotel surveillance video that appeared to show him attacking his ex-girlfriend.

“I’m truly sorry,” Combs said in a video post on his Instagram page. “My behavior on that video is inexcusable. I take full responsibility for my actions in that video. I’m disgusted. I was disgusted then when I did it. I’m disgusted now.”

Addressing the camera directly, Combs said he had sought therapy and gone into rehab.

In the surveillance video from 2016, which was released by CNN on Friday, the rapper appears to grab R&B vocalist Casandra Ventura as she waits by an elevator in a California hotel. Clad only in a towel, he throws her to the floor, kicking her repeatedly before dragging her toward a hallway, the video shows.

A representative for Combs could not be immediately reached for further comment.

Ventura, who performs under the stage name Cassie, sued Combs in 2023, accusing him of serial physical abuse, sexual slavery and rape during a 10-year professional and romantic relationship in which he controlled her through intimidation, drugs and alcohol. The parties settled the matter the following day for undisclosed terms. Representatives for Combs said at the time the settlement was “in no way an admission of wrongdoing.”

The lawsuit was one of at least four civil complaints in recent months that leveled sexual assault allegations against Combs.

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The U.S. Department of Homeland Security said in March it had opened an investigation into the hip-hop star and searched his homes in the Miami area and in Los Angeles; it provided no details of the nature of the investigation.

Local television images of the search showed an armored vehicle and officers carrying rifles outside Combs’ Los Angeles home. Authorities detained some people at the property with their hands bound by zip ties.

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