UBS Maintains a 'Sell' on athenahealth (ATHN); Decent Quarter, But Valuation Too High
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Price: $85.24 --0%
Rating Summary:
7 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 13
Rating Summary:
7 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 13
Trade ATHN Now!
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, with a 52 week range of $40.79-$91.64.
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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, with a 52 week range of $40.79-$91.64.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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