UPDATE: Piper Jaffray Downgrades Allscripts Healthcare Solutions to Underweight on Weak Results
Piper Jaffray reduced its rating on Allscripts Healthcare Solutions (NASDAQ: MDRX) from Neutral to Underweight and lowered its price target from $12 to $7.
Piper Jaffray commented, "We are downgrading to UW given bookings are accelerating downward, margins are going nowhere, and the Company attempts to integrate a portfolio of outdated products while embarking on an ambitious release cycle of new products. About the best one can hope for from here is a takeout, which we still don't think is enough of a reason to support owning the shares. We estimate $15 is the best-case scenario on a takeout (2x EV/Rev). We think the risk/reward supports an Underweight rating and $7 target."
Allscripts Healthcare Solutions closed at $12.26 on Thursday.
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