Auriga Reiterates a 'Sell' on athenahealth (ATHN); Q1 Demonstrates Progress
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Price: $9.59 --0%
Rating Summary:
6 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Auriga reiterates a 'Sell' on athenahealth (NASDAQ: ATHN) price target raised $1 to $58.00.
Analyst, Gene Mannheimer, said, "We are reiterating our rating on ATHN following a solid quarter in which revenue exceeded our expectations on higher collections, albeit EPS and provider counts were essentially in line with our model. We are intrigued by Coordinator, the new disruptive offering for facilitating patient admission to the hospital, but recognize that as the lowest-margin product, will drag on the model in the near-term. Meanwhile our Sell rating stems primarily from valuation, which still appears excessive to us even awarding a 46x multiple on our forward EPS estimate. We note further that our model calls for physicians increasing at a decreasing rate, the implication being that greater cross-sell (increasing wallet share) must offset what we expect to be a decline in absolute provider growth to maintain ATHN's 30% growth targets."
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 $73.49 yesterday.
Analyst, Gene Mannheimer, said, "We are reiterating our rating on ATHN following a solid quarter in which revenue exceeded our expectations on higher collections, albeit EPS and provider counts were essentially in line with our model. We are intrigued by Coordinator, the new disruptive offering for facilitating patient admission to the hospital, but recognize that as the lowest-margin product, will drag on the model in the near-term. Meanwhile our Sell rating stems primarily from valuation, which still appears excessive to us even awarding a 46x multiple on our forward EPS estimate. We note further that our model calls for physicians increasing at a decreasing rate, the implication being that greater cross-sell (increasing wallet share) must offset what we expect to be a decline in absolute provider growth to maintain ATHN's 30% growth targets."
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 $73.49 yesterday.
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