In a report released today, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on Cerner Corp (CERN), with a price target of $75. The company’s shares closed yesterday at $57.09.
Halper said:
“Our rating remains Overweight and our PT remains $75. Although some amount of investor skepticism regarding the company’s growth outlook continues to temper valuation levels, we do not share those concerns. Our long-term DCF model assumptions are mostly conservative, with high single-digit revenue growth and modest margin expansion. Capital spending should moderate in 2019. We think the shares offer a compelling risk/reward trade off. Valuation Summary Cerner shares trade at a 32% discount to our DCF-based price target of $75.”
According to TipRanks.com, Halper is a 5-star analyst with an average return of 17.1% and a 60.6% 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 $63.33.
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The company has a one-year high of $67.57 and a one-year low of $48.78. Currently, Cerner Corp has an average volume of 2.14M.
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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.
