TruBridge Inc (TBRG) Stock Forecast & Price Target

TruBridge Inc. has demonstrated strong financial performance, with Patient Care gross margins increasing to 59.6%, reflecting a year-over-year gain of approximately 460 basis points driven by cost rationalization and better-than-expected non-recurring revenue. The company achieved 5% organic revenue growth in both its Financial Health and Patient Care segments, signaling robust market demand and operational execution improvements. Furthermore, successful offshoring strategies and enhanced operating efficiencies have positioned TruBridge well for further revenue increase, leading to an upward revision of revenue estimates for FY25 from $349 million to $353 million.

TruBridge Inc. has experienced a significant decline in bookings, with Financial Health bookings down 40% year-over-year and Patient Care bookings down over 50%, reflecting weak demand across critical segments. Additionally, the company's revenue guidance for 1Q25 is 1% below consensus, suggesting a lack of market confidence in achieving expected growth. Despite management's optimism regarding future deal closures and potential policy tailwinds, the overall outlook remains negative due to the substantial revenue implications of the declining bookings and the shift of deals into the latter half of the year.