Oppenheimer Maintains Bearish View On Athenahealth Ahead Of 3Q14 Results

In a research report released Tuesday, Oppenheimer analyst Bret Jones maintained an Underperform rating on Athenahealth (NASDAQ:ATHN) with a $90 price target, as the company will report third-quarter results on Thursday after the close and hold a conference call Friday morning.

Jones noted, “Our model has a slight miss on revenue and EPS but we believe the real concern is with physician adds. Given the enterprise implementation pipeline, we believe consensus must be expecting a dramatic increase in small/group implementations, which appears aggressive. We are also concerned about the lack of attention being paid to large client conversions. From a valuation standpoint, we view the shares as fairly rich, trading towards the high end of their historical range at 5.1x 2015E sales.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bret Jones has a total average return of 0% and a 60.0% success rate. Jones has a 14.2% average return when recommending ATHN, and is ranked #2174 out of 3326 analysts.

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