Cerner's (CERN) Reports In-Line EPS Due to Better Than Expected GM and Tax; Cowen Cuts Price Target to $70

Cowen maintained an Outperform rating on Cerner (NASDAQ: CERN), and cut the price target to $70.00 (from $76.00), following the company's 3Q earnings report. CERN reported 3Q15 revenues of $1.13B which was below consensus of $1.17B and guidance of $1.15B-$1.20B. However, adjusted EPS of $0.54 was in-line with consensus.

Analyst Charles Rhyee commented, "While EPS was in-line due to better than expected GM and tax, top-line missed for the third straight quarter. In addition, 4Q guidance was lowered and preliminary 2016 guidance was below expectations. While we don't think there's anything structurally wrong and believe strong bookings paint a more favorable LT outlook, the real issue is what the market will bear for a changing growth profile."

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 $66.09 yesterday.

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