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Raymond James Reiterates Strong Buy on Greenway Medical Technologies Following Acquisition Announcement

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In a report published Tuesday, Raymond James analyst Alexander Y. Draper reiterated a Strong Buy rating on Greenway Medical Technologies (NYSE: GWAY).

In the report, Raymond James noted, “After the close on Monday, Greenway entered into a definitive agreement to be purchased for $20.35 per share by Vista Equity Partners to merge with Vitera Healthcare Solutions. Assuming that the acquisition closes, the two companies and their respective solutions will operate and be sold under the Greenway brand. Greenway will continue to operate in their headquarters, Carrollton, Georgia, and places of principle operations, Tampa and Birmingham. The deal gives Greenway exposure to a much larger physician base of 100,000 (vs. Greenway's total provider count of 14,600 as of June 30, 2013). We think that there are several risks and uncertainties that come along with the merger, including successfully operating a merged entity with two separate HIT platforms and the question of which management team will maintain primary leadership over the company. Additionally, we expect that the announcement may cause some uncertainty in the ambulatory HIT space. Greenway has been our favorite ambulatory HIT name, but with the merger we would focus investors on Athena.”

Greenway Medical Technologies closed on Monday at $17.13.

Latest Ratings for GWAY

DateFirmActionFromTo
Sep 2013Raymond JamesDowngradesStrong BuyMarket Perform
Sep 2013KeyBancDowngradesBuyHold
Sep 2013William BlairDowngradesOutperformMarket Perform

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