Cantor Fitzgerald analyst Steven Halper reiterated a Buy rating on Cerner Corp (CERN) today and set a price target of $75. The company’s shares closed on Friday at $65.08, close to its 52-week high of $67.57.
Halper observed:
“. We reiterate our Overweight rating on CERN shares and maintain our 12-month price target at $75. After the close on Cerner reported 1Q19 revenue and adjusted EPS that were essentially in line with our estimates. Bookings of $1.24 billion declined from 1Q18 levels, as expected. We are not concerned by this as CERN has de-emphasized lower-margin, longer- term deals with an increased focus on increasing profitability. Along with its 4Q19 margin commitment (announced with the recent Starboard agreement), the company increased its adjusted EPS guidance. We expect overall performance to improve with added emphasis on margins and capital deployment.”
According to TipRanks.com, Halper is a 5-star analyst with an average return of 17.1% and a 62.9% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
Currently, the analyst consensus on Cerner Corp is a Moderate Buy with an average price target of $69.75, representing a 7.2% upside. In a report issued on April 26, Piper Jaffray also maintained a Buy rating on the stock with a $74 price target.
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Based on Cerner Corp’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $131 million. In comparison, last year the company had a net profit of $160 million.
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Cerner Corp. designs, develops, markets, installs, hosts and supports health care information technology, health care devices, hardware and content solutions for health care organizations and consumers. The company also provides value-added services, including implementation & training, remote hosting, operational management services, revenue cycle services, support and maintenance, health care data analysis, clinical process optimization, transaction processing, employer health centers, employee wellness programs and third party administrator services for employer-based health plans. It operates through the following segments: Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States. The Global segment includes revenue contributions and expenditures linked to business activity in Aruba, Australia, Austria, the Bahamas, Belgium, Bermuda, Brazil, Canada, Cayman Islands, Chile, Denmark, Egypt, England, Finland, France, Germany, Guam, India, Ireland, Kuwait, Luxembourg, Malaysia, Mexico, Netherlands, Norway, Portugal, Qatar, Romania, Saudi Arabia, Singapore, Slovakia, Spain, Sweden, Switzerland and the United Arab Emirates. The company was founded by Neal L. Patterson, Clifford W. Illig and Paul N. Gorup in 1979 and is headquartered in North Kansas City, MO.
