UPDATE: Sterne Agee Resumes Greenway Medical Technologies at Underperform on Share Overvalue
In a report published Wednesday, Sterne Agee analyst Greg T. Bolan resumed coverage on Greenway Medical Technologies (NYSE: GWAY) with an Underperform rating and $5.00 price target.
In the report, Sterne Agee noted, “While Greenway Medical has achieved admirable success with the 5-10 doctor practices over the past 5+ years, as the average size of physician practices rises, we do not think the company possesses enough scale to convince enterprise-size physician practices to use the company's technologies/services. We believe consensus revenue and EBITDA estimates are too high and GWAY shares are overvalued. Re-initiate with an Underperform rating and $5 price target.”
Greenway Medical Technologies closed on Tuesday at $11.69.
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