The firm also upped its price target to $27 from $12 on shares of the Franklin, TN-based healthcare company.
"After a year-long strategic review, in part catalyzed by activist investors, the company changed leadership and now the entire operating focus," Barclays wrote in an analyst note.
"Healthways used to maintain a portfolio of various health and wellness services attempting to cater to every constituent in healthcare. Going forward, the services offered and customers targeted are much more focused," the firm noted.
Barclays sees the new entity as significantly more focused, maintaining a better growth trajectory, selling services with clear value to customers and sustaining higher margins and return.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and solid stock price performance.
But the team also finds weaknesses including deteriorating net income, generally higher debt management risk and premium valuation.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: HWAY