UPDATE: Allscripts (MDRX) PT Lowered to $23 but BofA Securities Sees MSD Growth with Margin Upside

(Updated - June 27, 2022 8:03 AM EDT)

BofA Securities analyst Michael Cherny lowered the price target on Allscripts (NASDAQ: MDRX) to $23.00 (from $27.00) noting that the company has been in a period of constant transition over the last couple of years with the company's operational improvements and portfolio clean-up leading to the divestiture of the electronic health records (EHR) business. The “new” Allscripts should now be a mid-single-digit growth entity with further upside on already higher structural margins.

The analyst reiterated a Buy rating, stating "The company’s growth has numerous levers going forward, with a stable provider business (80%+ of current revenue) and a small but burgeoning payer and life sciences business that is well positioned to capitalize on broader market trends around data analytics and manufacturer services. This is all underwritten by a significant database that serves as MDRX’s differentiating factor in what is a fairly robust market for payer/life sciences services. All of this should set MDRX up for a steady and profitable/cash flow-generating growth opportunity, with a highly appealing partnership opportunity given how much reach MDRX has across the market."

You May Also Be Interested In

• BofA Securities Starts GE Vernova (GEV) at Neutral, 'Multiyear turnaround amid positive demand backdrop'
• JPMorgan Downgrades Monster Beverage (MNST) to Neutral
• Sherwin-Williams (SHW) PT Lowered to $286 at BofA Securities, 'risk to valuation'