Morgan Stanley Maintains on Allscripts Healthcare Solutions

In a report published Wednesday, Morgan Stanley analyst Julie Murphy maintained an Overweight rating on Allscripts Healthcare Solutions MDRX, raising its price target to $20.00 from $17.00. According to the report, following the previous Morgan Stanley note “What a Difference a Year Makes! Turnaround Thesis Validated” published this morning, analysts are updating model estimates and price target for MDRX. “Our PT is based on a 2.7x EV/Sales multiple, the 2-yr avg FY1 multiple for MDRX pre-April 2012 (prior to the strategic alternatives upheaval seen that year) applied to our base case 2015 revenue est of $1,523M,” the report noted. “Our bull case valuation of $23 reflects a 2.9x EV/Sales multiple (3-yr avg multiple pre-April 2012) applied to our bull case 2015 revenue estimate of $1607M. Our bear case valuation of $14 is based on a 2.0x multiple (3-yr avg multiple) applied to our bear case 2015 revenue estimate of $1,471M.” MDRX closed Tuesday at $15.52 with shares trading up at 2.51 percent.