UBS Maintains a 'Sell' on athenahealth (ATHN); Investments May Pressure 2H EPS Growth

UBS maintains a 'Sell' on athenahealth (NASDAQ: ATHN), raises price target by $1 to $31.

UBS analyst says, "ATHN's 2Q11 results were strong across the board as the company beat consensus metrics including ‘doc adds’, revenue, EBITDA and EPS. 2Q revenue of ~$78 mil (+33% y-o-y) represented an uptick in growth and combined with a record GM of 62.7% (+120 bps vs. UBSe), lead to outperformance. As a result of strong 1H11 results and the Proxsys deal, ATHN raised its forecasts. That said, 2H11 investments (Proxsys, SG&A, R&D, client/prof services) may pressure 2H11 EPS and leads us to raise our 2011 EPS estimate by just $0.02 to $.0.80."

For more ratings news on athenahealth click here and for the rating history of athenahealth click here.

Shares of athenahealth closed at $48.58 yesterday.

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