UPDATE: Deutsche Bank Initiates Coverage on Computer Programs & Systems with Hold Rating, $66 PT on Limited Upside Going Forward

In a report published Thursday, Deutsche Bank analyst George Hill initiated coverage on Computer Programs & Systems CPSI with a Hold rating and $66.00 price target. In the report, Deutsche Bank noted, “We are initiating coverage of CPSI with a Hold rating. While we think that the rural and small hospital market that CPSI addresses has limited new EMR sales opportunities we expect that CPSI will generate revenue growth through cross sales and competitive replacements. We expect competitive replacements for hospitals that have systems that will not be able to achieve Stage 2 and we expect cross sales to current customers of ambulatory and emergency department solutions. We think that CPSI is behind other vendors in population health solutions but the company has time as demand from its customer base is likely to lag demand in larger integrated systems.” Computer Programs & Systems closed on Wednesday at $58.80.