Oppenheimer Keeps Their Buy Rating on Athenahealth

By Jason Carr

In a report released yesterday, Mohan Naidu from Oppenheimer reiterated a Buy rating on Athenahealth (NASDAQ: ATHN), with a price target of $154. The company’s shares closed yesterday at $130.07.

Naidu wrote:

“We hosted athenahealth mgmt. with investors, which provided more clarity on recent hiccups. The surprise contraction in physician utilization and medical inflation, coupled with the promotions and implementation delays, pressured revenues in Q1. Mgmt. expressed confidence in the new guidance, which incorporates Q1 trends, but physician utilization remains a wild card. On the bookings front, the ROI guarantee looks very promising to push the physicians who are on the fence. Near- term hiccups are certainly bringing visibility and revenue model concerns. While consistency and operational improvement can do a lot of good for investor confidence, we hope the activist involvement doesn’t drastically change the focus on creating the disruptive next-generation healthcare platform for near-term gains.”

According to TipRanks.com, Naidu is a 4-star analyst with an average return of 5.6% and a 53.2% success rate. Naidu covers the Technology sector, focusing on stocks such as Quality Systems, Evolent Health, and Healthequity.

Currently, the analyst consensus on Athenahealth is Moderate Buy and the average price target is $122.50, representing a -5.8% downside.

In a report released yesterday, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $140 price target.

Based on Athenahealth’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $285 million and GAAP net loss of $1.4 million. In comparison, last year the company earned revenue of $256 million and had a GAAP net loss of $833K.

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athenahealth, Inc. provides cloud-based business services and mobile applications for medical groups and health systems. It also provides ongoing billing, clinical-related, and other related services to customers. The company offers practice management and electronic health record services. Its service offerings are based on proprietary web-native practice management and electronic health record software, which offer payer knowledge-base and integrated back-office service operations and care coordination services. The company’s cloud-based software offers four integrated offerings through athenaNet; athenaCollector for revenue cycle management; athenaClinicals for clinical cycle management; athenaCommunicator for patient cycle management; and athenaCoordinator for referral cycle management. Athenahealth was founded by Jonathan S. Bush and Todd Y. Park on August 21, 1997 and is headquartered in Watertown, MA.