UPDATE: Goldman Sachs Reiterates Overweight Rating, Raises PT on athenahealth Following Ascension Health Deal Announcement

In a report published Friday, Goldman Sachs analyst Sean W. Wieland reiterated an Overweight rating on athenahealth ATHN, and raised the price target from $104.00 to $127.00. In the report, Goldman Sachs noted, “Athenahealth's announced deal with Ascension Health will add 4,000 providers to the platform and give investors clear visibility to 30% revenue growth in 2014. We believe this will drive multiple expansion to 6x forward revenue. We estimate the annualized impact of this contract to be $40 million in revenue, based on a 1% fee on $4 billion of professional fee collections at Ascension Health. Reiterate Overweight rating, raising our price target to $127 on increased estimates and increased target multiple.” athenahealth closed on Thursday at $91.57.