UPDATE: J.P. Morgan Initiates Coverage on athenahealth with Overweight Rating, $155 PT on Good Market Position

In a report published Monday, J.P. Morgan analyst Gavin Weiss initiated coverage on athenahealth ATHN with an Overweight rating and $155.00 price target. In the report, J.P. Morgan noted, “We initiate coverage of athenahealth (ATHN) with an Overweight rating and a Dec-2014 price target of $155. In a competitive market for electronic medical records and revenue-cycle management solutions, athenahealth offers highly rated products differentiated from competitors' because of SaaS-based functionality and supportive back-office operations. athena has added doctors to its network at a CAGR of ~22% since 2008, yet we believe there is still ample opportunity to expand within the U.S. physician market given its current market penetration and industry fundamentals that should drive continued demand. While the stock has outperformed our HIT universe in 2013 and valuation levels are lofty, we believe athena is well positioned to continue to deliver growth.” athenahealth closed on Friday at $132.11.