Leerink Swann Upgrades athenahealth (ATHN) to Outperform on Tailwinds

December 7, 2012 10:53 AM EST Send to a Friend
Get Alerts ATHN Hot Sheet
Price: $113.76 +0.57%

Rating Summary:
    15 Buy, 13 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 40
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Leerink Swann upgraded athenahealth (NASDAQ: ATHN) from Market Perform to Outperform and raised its valuation range to $80-$85 from $66-$69.

The firm comments, "At the company's investor day yesterday the management team highlighted that it expects to grow revenue ~24-30% y/y in 2013E and the 5-year target for revenue growth stands at ~30% per year. We believe that the stock has priced in modest gross margin expansion long term and revenue growth in the ~25-30% range. In our view ATHN has a leading ambulatory revenue cycle and EMR product, the company's enterprise sales wins seem to be gaining momentum, and we believe that in 2H:13 the Coordinator product will gain additional earnings and sales leverage. Given these tailwinds and adjusted investor expectations, we upgrade shares of ATHN to Outperform."

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 $72.17 yesterday.


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