In a report released today, Steven Halper from Cantor Fitzgerald reiterated a Hold rating on Athenahealth (NASDAQ: ATHN), with a price target of $140. The company’s shares opened today at $151.95, close to its 52-week high of $158.66.
Halper said:
“Technology strategy evolving. After its analyst meeting in February, our sense was that the company was trying to add more capabilities to its platform in order to create more value for existing clients. It appears as though the strategy is far more complicated as the company is attempting to move from a “monolithic platform” to provide “micro-services”. In essence, the company will attempt to unbundle its services and allow providers to use these services on an incremental basis. This development work has been underway for some time now. The company was reluctant to commit to when the “micro-services” will be commercially available. But the transition is an important component of the company’s future growth strategy.”
According to TipRanks.com, Halper is a 5-star analyst with an average return of 17.0% and a 69.2% 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 Athenahealth is Moderate Buy and the average price target is $148.77, representing a -2.1% downside.
In a report issued on April 30, RBC Capital also maintained a Hold rating on the stock with a $136 price target.
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Based on Athenahealth’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $31.1 million. In comparison, last year the company had a GAAP net loss of $1.4 million.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is neutral on the stock.
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athenahealth, Inc. engages in the provision of cloud-based business services and mobile applications for medical groups and health systems. It offers network-based medical record, revenue cycle, patient engagement, care coordination, population health services, and other point-of-care mobile applications.
