UPDATE: J.P. Morgan Initiates Coverage on Allscripts Healthcare Solutions with Overweight Rating, $18 PT as Turnaround is Still in Its Infancy

In a report published Monday, J.P. Morgan analyst Gavin Weiss initiated coverage on Allscripts Healthcare Solutions MDRX with an Overweight rating and $18.00 price target. In the report, J.P. Morgan noted, “We are initiating coverage of Allscripts (MDRX) with an Overweight rating and a Dec. 2014 price target of $18. We believe the growing share of recurring revenues, in part due to the company's large installed physician base, combined with recent bookings trends, sets the company up well for improving trends in 2014. Although MDRX has been one of the top performers in the healthcare technology universe in 2013 (shares up 61% y/y), we believe its earning power may still be undervalued as the full impact from the new management team's efforts is still to be realized.” Allscripts Healthcare Solutions closed on Friday at $15.18.