UBS Maintains a 'Sell' on athenahealth (ATHN); Decent Quarter, But Valuation Too High

July 20, 2012 3:05 PM EDT Send to a Friend
Get Alerts ATHN Hot Sheet
Price: $142.64 +2.43%

Rating Summary:
    15 Buy, 12 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 35
Trade ATHN Now!
Join SI Premium – FREE
UBS maintains a 'Sell' on athenahealth (NASDAQ: ATHN) price target of $58.00 (from $34.00).

Analyst, Stephen Shankman, said, "In our view, expectations are (and should be) high for a stock trading at 66x 2013e EPS and we believe ATHN 2Q12 results were solid, but not overwhelmingly positive...Without the recent HMA (NYSE: HMA) (enterprise) deal announcement, 2Q results may have come under greater scrutiny, in our view."

Shankman now values ATHN with a cloud-based/Saas PE multiple (vs. other HCIT). Therefore at 45x new UBS FY13 EPS estimate of $1.29 (from $1.28), the new price target is $58 (well below current price)

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

Shares of athenahealth closed at $87.18 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change

Related Entities

UBS

Add Your Comment