Update shared on04 Aug 2025
Fair value Increased 6.90%Analysts raised their price target for Performant Healthcare to $7.75, citing its leading role in healthcare payment integrity, favorable momentum from its new New York Medicaid contract, and confidence in its scalable, diversified business model.
Analyst Commentary
- Recognition of Performant as a leading technology-enabled healthcare payment integrity vendor.
- Positive impact anticipated from the implementation of Performant’s first-ever state Medicaid recovery audit contract in New York.
- Expectation that success in New York will position the company favorably for additional state-level opportunities.
- Confidence in Performant's capabilities and its scalable business model.
- Belief in the company’s ability to expand services across a diverse range of payor types.
What's in the News
- Machinify agreed to acquire Performant Healthcare for approximately $700 million, offering $7.75 in cash per share; Performant shares will be delisted following the transaction.
- Termination fees set at $39.96 million (buy side) and $19.98 million (sell side); deal requires antitrust, stockholder, and regulatory approvals, and is expected to close by year-end 2025.
- Performant withdrew its previously issued full-year 2025 financial guidance.
- For Q2 2025, Performant expects revenues of approximately $37.8 million and net income of approximately $2.1 million.
Valuation Changes
Summary of Valuation Changes for Performant Healthcare
- The Consensus Analyst Price Target has risen from $7.25 to $7.75.
- The Future P/E for Performant Healthcare has risen from 54.26x to 58.00x.
- The Net Profit Margin for Performant Healthcare remained effectively unchanged, at 7.75%.
Disclaimer
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