Oppenheimer Sticks to Their Hold Rating for Allscripts (MDRX)

In a report released today, Mohan Naidu from Oppenheimer maintained a Hold rating on Allscripts (NASDAQ: MDRX). The company’s shares closed yesterday at $12.59.

Naidu wrote:

“Allscripts reported Q2 numbers mostly in line at $526M/$0.18 but bookings were below expectations at $278M vs. consensus of $362M. Lack of regulatory drivers and focus on ROI-driven sales, which elongates sales cycles, impacted bookings with weakness in both software and client services segments. Management announced its intention to divest its interest in its Netsmart venture—which we believe will likely return sizeable ROI (invested $70M in Q1:16 and contributed home health assets) and improve the balance sheet, but impact revenue growth as Netsmart is one of the company’s higher growth contributors. Traction with the EIS clients and monetization of Practice Fusion clients is encouraging.”

According to TipRanks.com, Naidu is a 5-star analyst with an average return of 13.1% and a 60.4% 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 Allscripts is a Strong Buy with an average price target of $16.20.

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The company has a one-year high of $16.13 and a one-year low of $10.78. Currently, Allscripts has an average volume of 1.74M.

Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MDRX in relation to earlier this year.

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Allscripts Healthcare Solutions, Inc. engages in the provision of clinical, financial, connectivity, information solutions, and related professional services. It operates through the following segments: Clinical and Financial Solutions; Population Health; and Netsmart.