Jefferies Cuts PT on athenahealth (ATHN) to $50; Says Lowered Outlook Comes from Unexpected Places
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Price: $9.59 --0%
Rating Summary:
6 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
Rating Summary:
6 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 10
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Jefferies cut its price target on athenahealth (Nasdaq: ATHN) by 13.8 percent, from $58 to $50, while keeping a Hold rating on the shares.
The firm stated that lowered guidance was expected as pricing pressure increased, but the source -- R&D and COGS, instead of marketing -- was not expected.
With athena looking to take on more client-claim work, marings were expected to suffer. Jefferies commented, "Management believes clearing this bottleneck can have the greatest positive impact on client DAR. This initiative alone will have a 50 bps negative
impact on margin. However, as athena is able to automate more of these processes (as it has done in the past), GM will benefit over the long-term."
On the revenue mix, and its impact to margins: "Management believes clearing this bottleneck can have the greatest positive impact on client DAR. This initiative alone will have a 50 bps negative impact on margin. However, as athena is able to automate more of these processes (as it has done in the past), GM will benefit over the long-term."
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 $49.04 yesterday.
The firm stated that lowered guidance was expected as pricing pressure increased, but the source -- R&D and COGS, instead of marketing -- was not expected.
With athena looking to take on more client-claim work, marings were expected to suffer. Jefferies commented, "Management believes clearing this bottleneck can have the greatest positive impact on client DAR. This initiative alone will have a 50 bps negative
impact on margin. However, as athena is able to automate more of these processes (as it has done in the past), GM will benefit over the long-term."
On the revenue mix, and its impact to margins: "Management believes clearing this bottleneck can have the greatest positive impact on client DAR. This initiative alone will have a 50 bps negative impact on margin. However, as athena is able to automate more of these processes (as it has done in the past), GM will benefit over the long-term."
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 $49.04 yesterday.
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