UPDATE: ISI Group Reiterates Market Weight Rating, Lowers PT on athenahealth

In a report published Monday, ISI Group reiterated its Market Weight rating on athenahealth ATHN, but lowered its price target from $78.00 to $74.00. ISI Group noted, “Ahead of athenahealth's annual Investor Summit (12/6 at the company's HQ in Watertown, MA), we have conducted a scenario analysis to identify the range of potential outcomes the company could guide to for FY13 (and what it may mean for shares). Management's forward year guidance has been a consistent focus during the last two analyst days, with shares down significantly following the dissemination of FY12 guidance at last year's meeting (more than 30% intraday). We still believe in the long-term viability of ATHN's business model, with the core functionality of driving cash flow improvements for its physician customers as a key value-add that should maintain best-in-group growth trends. However, despite shares being off ~32% since our July downgrade, the range of outcomes at the analyst day, including the potential for guidance below mgmt's LT 30% revenue growth target, causes us to maintain our Market Weight rating. We have also tweaked our PT down slightly to $74.00 due to reduced estimates.” athenahealth closed on Friday at $63.69.