UPDATE: Credit Suisse Upgrades Allscripts Healthcare Solutions to Outperform; Operations Stabilizing
Credit Suisse upgraded Allscripts Healthcare Solutions (NASDAQ: MDRX) from Neutral to Outperform and raised the price target from $13.00 to $15.00.
Credit Suisse noted, "We are upgrading shares to Outperform (from Neutral), as we are growing more comfortable that new management can stabilize customer churn and successfully demonstrate the functionality of recent software upgrades. It is our sense that the issues that have plagued MDRX since the acquisition of ECLP have led customers to under-purchase, and as new management & a more stable product offering gain acceptance in the sizable customer footprint, bookings & earnings could recover. Additionally, we don't discount the potential for a rationalized cost structure to offer further support to earnings growth, although the near-term path to growth is likely to be volatile."
Allscripts Healthcare Solutions closed at $12.35 on Tuesday.
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Tags: Credit Suisse