In a report released today, Mohan Naidu from Oppenheimer maintained a Hold rating on Allscripts (NASDAQ: MDRX). The company’s shares closed yesterday at $12.04.
Naidu said:
“Netsmart transaction lowered numbers for MDRX in the quarter. Bookings were down 29% y/y to $246M in the quarter and MDRX attributed the lower numbers due to mgmt’s distraction with the ongoing process to divest Netsmart. Management expects that process will wrap up in the coming weeks but warned about potential for no-deal due to the complexity of the ownership structure. We believe a Netsmart transaction could unlock the value and provide strong returns on MDRX’s investment and bolster the balance sheet. However, given the strong contributions from Netsmart in recent years, divestiture will surely impact MDRX’s growth profile.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 16.1% and a 61.9% success rate. Naidu covers the Services sector, focusing on stocks such as Hms Holdings Corp, Evolent Health, and Premier Inc.
Allscripts has an analyst consensus of Moderate Buy, with a price target consensus of $14, representing a 16.3% upside. In a report released yesterday, Cantor Fitzgerald also downgraded the stock to Hold with a $12 price target.
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The company has a one-year high of $16.13 and a one-year low of $10.78. Currently, Allscripts has an average volume of 1.61M.
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Allscripts Healthcare Solutions, Inc. engages in the provision of clinical, financial, connectivity, information solutions, and related professional services. It operates through the following segments: Clinical and Financial Solutions; Population Health; and Netsmart.
