UPDATE: Sterne Agee Downgrades Greenway Medical Technologies to Underperform on Multiple Compression
Sterne Agee reduced its rating on Greenway Medical Technologies (NYSE: GWAY) from Neutral to Underperform and lowered its price target from $15 to $14.
Sterne Agee said, "Consensus CY13 EBITDA estimate has dropped 8% while the EV/EBITDA multiple increased by ~4 points (17%) over the past month (Exhibit 2). GWAY has the second highest EV/EBITDA multiple among peers. Without a meaningful upward revision to EBITDA guidance, we do not believe this multiple trajectory is sustainable. The company currently forecasts adjusted EBITDA of $19.3-23.4 million for FY13. Our estimate is at the midpoint of the range."
Greenway Medical Technologies closed at $17.75 on Friday.
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Tags: Sterne Agee