Dougherty & Co Starts Allscripts (MDRX) at Neutral

Dougherty & Co initiates coverage on Allscripts (NASDAQ: MDRX) with a Neutral rating. Analyst Gene Mannheimer thinks valuation looks fair.

"This diversified healthcare IT company has evolved from purely an ambulatory (physician practice) play to a comprehensive provider of financial and clinical solutions to docs, hospitals and most recently post-acute care with its NetSmart joint venture (closed in April). Growth of the core business has been elusive, at best, but we see bright spots within the population health segment and NetSmart. The stock price has been reset as growth hasn’t manifested as many expected, and that is reflected in the current valuation in our view. We like what Allscripts has done to stabilize its core business domestically, win some significant international footprints, and bolt-on strategic acquisitions in growthy areas. We think MDRX should trade in line with peers at 9x forward EBITDA, implying less than 10% upside from current levels, hence our Neutral rating," said the analyst.

For an analyst ratings summary and ratings history on Allscripts click here. For more ratings news on Allscripts click here.

Shares of Allscripts closed at $10.73 yesterday.

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