Leerink Partners Remains Bullish on Cerner (CERN) Following Weak 3Q Report
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Leerink Partners maintained an Outperform rating on Cerner (NASDAQ: CERN), and cut the price target to $65.00 (from $70.00), following the company's 3Q earnings report. CERN reported adjusted EPS of $0.59 compared to the consensus of $0.60. Revenue of $1.185B missed the consensus estimate of $1.244B.
Analyst David Larsen commented, "CERN reported F3Q:16 results. Revenue, adjusted EPS, and bookings all missed our estimates and consensus. While the quarter was light, CERN posted its second best bookings quarter in the history of the firm, and preliminary 2017 guidance looks decent. We believe that CERN is approaching its long-term steady state of ~5-10% y/y growth in bookings and ~10% top-line growth, which in our view means that the stock deserves to trade at ~21.7x our NTM EPS estimate implying a share price of $65.00. While the market is slowing, management indicated that the pipeline is "at an all-time high," and our MEDACorp checks consistently indicate that CERN is winning most of the deals that come to market."
Shares of Cerner closed at $57.34 yesterday.
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