Cantor Fitzgerald analyst Steven Halper maintained a Hold rating on CPSI (NASDAQ: CPSI) today and set a price target of $32. The company’s shares opened today at $29.45.
Halper wrote:
“1Q18 performance was strong. Revenue of $70.9 million (+10.6% y/y) was above FactSet consensus of $67.9 million and our estimate of $67.7 million. Revenue growth was driven by solid demand for TruBridge solutions as well as by robust MU3 sales. System Sales and Support revenue of $45.8 million grew 5.4% from year-earlier levels. TruBridge revenue of $25.1 million grew 21.7% y/y, reflecting continued customer interest in management, consulting and managed IT solutions. Gross margin was 55.1% (+277bps y/y), driven by synergies and cost controls. Adjusted EBITDA increased to $12.7 million from $8.2 million a year earlier. We are impressed with the company’s efforts to drive margins higher. Adjusted EPS of $0.59 were above FactSet consensus of $0.39 and our estimate of $0.47. Management indicated that the adoption of a new revenue recognition standard, known as ASC 606, had an inconsequential impact on the company’s revenues and EPS in 1Q18. CPSI signed 14 new EHR client contracts in the quarter.”
According to TipRanks.com, Halper is a 5-star analyst with an average return of 15.5% and a 65.5% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
CPSI has an analyst consensus of Hold, with a price target consensus of $30.50.
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The company has a one-year high of $36.15 and a one-year low of $26.35. Currently, CPSI has an average volume of 87.96K.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock.
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Computer Programs & Systems, Inc. engages in the provision of healthcare information technology solutions and services. It operates through the following segments: Acute Care EHR, Post-acute Care EHR, and TruBridge. The Acute EHR segment consists of acute care software solutions and support generated by Evident and Healthand.
