Oppenheimer Keeps Their Hold Rating on CPSI

In a report released today, Mohan Naidu from Oppenheimer maintained a Hold rating on CPSI (NASDAQ: CPSI). The company’s shares closed yesterday at $29.45.

Naidu commented:

“CPSI beat estimates handily for the quarter at $71M/$0.59 with top-line beat lifting margins and earnings. TruBridge continues to provide strong growth (up 22% y/y) and management expects mid-teens growth for the segment in CY18. Decline (down 6% y/y) in bookings is attributed to lower bookings in TruBridge which were expected to remain choppy as the company relies more on larger dollar value TruBridge contracts, which creates volatility in timing. Additionally, CPSI announced 14 new Thrive contracts in the quarter, significantly above our expectations, and increases our hope of increasing deal flow in the small hospital segment. We expect these bookings to provide upside to CY18 numbers, but visibility into CY19 remains uncertain.”

According to TipRanks.com, Naidu is a 4-star analyst with an average return of 7.2% and a 51.2% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Hms Holdings Corp, and Express Scripts.

Currently, the analyst consensus on CPSI is Hold and the average price target is $30.50, representing a 3.6% upside.

In a report released yesterday, Cantor Fitzgerald also maintained a Hold rating on the stock with a $32 price target.

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Based on CPSI’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $70.88 million and quarterly net profit of $3.97 million. In comparison, last year the company earned revenue of $64.08 million and had a net profit of $244K.

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.