Topeka Capital Downgrades Cerner (CERN) to Hold

Topeka Capital downgraded Cerner (NASDAQ: CERN) from Buy to Hold with a price target of $70.00. The change is tied to valuation.

Analyst Eugene M. Mannheimer said, "We are downgrading CERN to Hold from Buy as the stock now trades 3% above our $70 target, and following a 40% return since our initial recommendation in June of 2014. Moreover, beginning this year we envision lower growth broadly across the healthcare IT landscape, with Meaningful Use approaching the back half of its approximate 10-year run."

"While CERN and Epic have leaped ahead of the competition, we note CERN remains a distant second to Epic. Given high market penetration rates for clinical systems, Cerner’s uncharacteristic purchase of Siemens’ Health Services is in our view a tell-tale sign that it needs to come up with a “sequel”. We recommend moving to the sidelines at current valuation," he added.

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 $72.38 yesterday.

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