UPDATE: Sterne Agee Reiterates Neutral Rating, Raises PT on athenahealth
In a report published Monday, Sterne Agee Group reiterated its Neutral rating on athenahealth (NASDAQ: ATHN), and raised its price target from $72.00 to $80.00.
Sterne Agee noted, “The proposed acquisition of Epocrates (EPOC, NR, $11.68) announced last week has reignited investor interest in the stock, which had dropped nearly 30% following third quarter results. At 21x the consensus CY14 EBITDA estimate of $139 million, ATHN trades at a significant premium to the group (11x CY14). Our revised $80 price target is based on 20x our CY14 EBITDA estimate. This estimate does not incorporate any contribution from Epocrates. We await clarification on the terms of the financing from athenahealth. Our $80 target implies a P/E multiple of 50x on our CY14 EPS estimate of $1.59.”
athenahealth closed on Friday at $83.35.
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