UBS Maintains a 'Sell' on athenahealth (ATHN); High Growth But Little Leverage

UBS maintains a 'Sell' on athenahealth (NASDAQ: ATHN) price target raised $1 to $32.00.

UBS analyst says, "ATHN's 3Q11 results featured a 1% revenue beat (vs. Street) and EPS ahead of consensus. ATHN benefitted from significantly lower taxes in 3Q, reporting a 39.3% tax rate, or 420 bps below our estimate. The company tightened its 2011 rev guidance to the high end of its range and increased the top end of its EPS forecast by $0.02, due in part to a lower tax outlook. As we previously suggested, investments (Proxsys, SG&A, R&D) appear to be pressuring E.PS as 3Q EPS grew below revenue, and 4Q EPS may be down sequentially and YoY."

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

Shares of athenahealth closed at $63.07 yesterday.

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