Auriga Reiterates a 'Buy' on Cerner (CERN) on Strong Q4 Results, But Cutting PT to $72
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Auriga reiterates a 'Buy' on Cerner (NASDAQ: CERN) price target lowered from $75 to $72.
Auriga analyst said, "We are reiterating our rating on CERN following strong Q4 results in which revenue, EPS and bookings each exceeded expectations. Importantly, Q4 bookings exceeded the top end of Cerner's guidance by $200MM as some large contracts drove the upside. Equally reassuring was the Company's FY12 initial guidance which brackets consensus and our estimates. Despite what we expect to be some gross margin compression from medical device resale, we still anticipate continued operating margin leverage for the foreseeable future. While not inexpensive, we maintain that CERN is the publicly-held stalwart in the space based on market positioning. Our initial FY13 EPS estimates imply 20% year-year growth, which is the driver of our price target reduction."
For an analyst ratings summary and ratings history on Cerner click here. For more ratings news on Cerner click here.
Shares of Cerner closed at $62.57 yesterday, with a 52 week range of $53.93-$125.91.
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Auriga analyst said, "We are reiterating our rating on CERN following strong Q4 results in which revenue, EPS and bookings each exceeded expectations. Importantly, Q4 bookings exceeded the top end of Cerner's guidance by $200MM as some large contracts drove the upside. Equally reassuring was the Company's FY12 initial guidance which brackets consensus and our estimates. Despite what we expect to be some gross margin compression from medical device resale, we still anticipate continued operating margin leverage for the foreseeable future. While not inexpensive, we maintain that CERN is the publicly-held stalwart in the space based on market positioning. Our initial FY13 EPS estimates imply 20% year-year growth, which is the driver of our price target reduction."
For an analyst ratings summary and ratings history on Cerner click here. For more ratings news on Cerner click here.
Shares of Cerner closed at $62.57 yesterday, with a 52 week range of $53.93-$125.91.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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