ISI Group reaffirmed their buy rating on shares of Allscripts Healthcare Solutions (NASDAQ: MDRX) in a report issued on Wednesday. They currently have a $14.00 target price on the stock, up from their previous target price of $10.50.
“MDRX reported results that, while somewhat mixed, displayed incremental positive data points that reaffirms our optimistic outlook on the long-term turnaround potential. With regards to bookings, the company delivered ~12% sequential bookings growth, coming in well above worst-case fears and highlighting the early success of the new product roll-out. Within this bookings report, MDRX closed two new Sunrise contracts during the Q, including one expansion of an existing contract (Ambulatory and Sunrise Financial Manager) and one new large integrated delivery network (bundling of new offerings). Additionally, MDRX announced a broad based restructuring plan, including plans to invest $45-50 MM (one-time expenses) in FY13, which the management expects to drive at least $50 MM of annual run-rate savings beginning in FY14 (mgmt expects ~$25 MM of savings in FY13, which will partially offset one-time expenses). While it is still early in the turnaround, the initial steps taken by new CEO Paul Black appear to be positioning MDRX to return to a more normalized growth level. Therefore, we reiterate our Buy rating on MDRX and are increasing our PT from $10.50 to $14.00 (~9x FY14 EBITDA). Customer feedback, and any updates on new product rollouts will be crucial to MDRX’s ability to win new business going forward.,” the firm’s analyst commented.
Allscripts Healthcare Solutions opened at 12.40 on Wednesday. Allscripts Healthcare Solutions has a 52-week low of $8.84 and a 52-week high of $19.80. The stock’s 50-day moving average is currently $10.65. The company has a market cap of $2.119 billion and a price-to-earnings ratio of 46.27.
A number of other analysts have also recently weighed in on MDRX. Analysts at Raymond James upgraded shares of Allscripts Healthcare Solutions from a market perform rating to a strong-buy rating in a research note to investors on Monday, January 14th. They now have a $13.00 price target on the stock. Separately, analysts at Avondale Partners upgraded shares of Allscripts Healthcare Solutions from a market perform rating to an outperform rating in a research note to investors on Monday, January 7th. Finally, analysts at Jefferies Group cut their price target on shares of Allscripts Healthcare Solutions from $13.00 to $10.00 in a research note to investors on Friday, December 21st. They now have a hold rating on the stock.
Five investment analysts have rated the stock with a buy rating, two have issued an overweight rating, twelve have assigned a hold rating, and one has assigned a sell rating to the company’s stock. The company presently has an average rating of hold and an average target price of $12.61.
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