Leerink Partners Downgrades Cerner (CERN) to Market Perform

December 1, 2016 7:00 AM EST
Get Alerts CERN Hot Sheet
Price: $51.24 +0.89%

Rating Summary:
    21 Buy, 13 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 19 | New: 11
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Leerink Partners downgraded Cerner (NASDAQ: CERN) from Outperform to Market Perform with a price target of $50.00 (from $65.00) on slow demand, Trump pause and inconsistent results.

Analyst David Larsen commented, "We are lowering our 2017 and 2018 estimates for CERN, cutting our PT and downgrading to Market Perform as we believe there are several macro-headwinds putting pressure on CERN’s business model that we do not expect to alleviate any time soon. These headwinds include: a sharp slow-down in growth due to the end of Meaningful Use, incremental cost pressure and uncertainty on providers and physicians due to the possible repeal of the ACA from the new Trump administration, and potentially a slower movement towards value-based care under new Health and Human Services Secretary Tom Price. We also believe management has a history of over-guiding and under-delivering and that CERN's revenue cycle products still need work to be competitive with other vendors. We downgrade shares from Outperform to Market Perform and reduce our price target from $65 to $50."

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 $49.78 yesterday.

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