Citi Maintains Buy Rating On MDRX
April 07, 2011 7:42 AM
Citi is maintaining its Buy rating on shares of Allscripts Healthcare Solutions, Inc. (NASDAQ: MDRX).
“Allscripts filed an 8-K after market close in which it made three announcements: 1) A new credit arrangement reduces interest margin for borrowings under the senior credit facilities by 75 bps,” Citi writes.
“2) MDRX entered into an agreement with Affiliated Computer Services (ACS) where ACS will provide remote hosting services for the company's Sunrise acute care clients; and 3) MDRX' Chief Technology Officer, John Gomez, is resigning to pursue other interests.
“Despite the savings from the credit agreement and outsourcing, we are disappointed to see Gomez go and have some concerns with hosting strategy. The change to the interest rates could be worth $0.01- $0.02 in 2011. We see the news as a modest incremental negative for the company.”
Allscripts Healthcare closed Wednesday at $22.49.
