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: $145.58 --0%

Rating Summary:
    11 Buy, 14 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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.




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