Auriga Reiterates a 'Buy' on Computer Programs and Systems (CPSI); Mixed Quarter and Outlook Strong

Auriga reiterates a 'Buy' on Computer Programs and Systems (NASDAQ: CPSI) price target raised $1 to $69.

Analyst, Gene Mannheimer, said, "We are reiterating our rating on CPS following a good bookings quarter in which revenues were in line (inclusive of deferring $5 million to future periods) but EPS missed by $0.06. Specifically, $5 million of revenue from systems installed during the quarter will be recognized upon customers' achievement of Meaningful Use (MU) under the health IT stimulus (ARRA). The costs of installing the systems were incurred during the period (we estimate a 7c-8c impact), which was the primary driver of the EPS miss, in our view. The good news is we expect CPSI to make this up in Q4. We believe CPSI is maintaining its dominant footprint in the sub-100 bed hospital market, despite new competition lurking."

For an analyst ratings summary and ratings history on Computer Programs and Systems click here. For more ratings news on Computer Programs and Systems click here.

Shares of Computer Programs and Systems closed at $59.73 yesterday.

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