UPDATE: JP Morgan Upgrades Allscripts Healthcare Solutions to Overweight: Valuation Depressed
JP Morgan raised its rating on Allscripts Healthcare Solutions (NASDAQ: MDRX) from Neutral to Overweight and increased its price target from $12 to $15.
JP Morgan noted, "2Q results from MDRX showed that the business overall is on a much more stable footing than we would have expected in light of the board turmoil and earnings miss last quarter. …MDRX shares trade at less than 10x 2013E EPS, close to trough levels. Even at $10.30 as indicated in the after-market, we believe the shares present an attractive value, and we expect the multiple to revert to ~15x over the next twelve months, more in line with what we would view as stable earnings growth of 10-15% over the next few years for the company."
Allscripts Healthcare Solutions closed at $9.60 on Wednesday.
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