UPDATE: Sterne Agee Reiterates Buy Rating, Raises PT on Cerner Corporation

In a report published Monday, Sterne Agee Group reiterated its Buy rating on Cerner Corporation

, and raised its price target from $90.00 to $96.00. Sterne Agee noted, “We are revising our price target from $90 to $96. This target is based on 14.5x our CY14 EBITDA estimate of $1.1 billion; CERN currently trades at 12x the consensus estimate. The average FY2 EV/EBITDA multiple over the past 10 years is 10x. Our $96 target implies a FY2 P/E multiple of 30x, which is also higher than the 24x CERN has traded at over the past 10 years. We regard CERN as a secular growth stock within the HCIT sector and believe the company can grow earnings in the mid to high teens for the next several years.” Cerner Corporation closed on Friday at $81.62.