UPDATE: Baird Upgrades athenahealth, Inc. to Outperform

Eric Coldwell, analyst at Baird, on Tuesday upgraded athenahealth, Inc. from Neutral to Outperform with a price target of $255. In the short term, the analyst at Baird, “would love to see a pullback” and said he is “not saying ATHN has to be bought right here, right now.” Instead Coldwell sees athena shares being “significantly larger in five, 10, 20 years” based on an EV/revenue-weighted approach. Coldwell feels that “fighting exuberant valuation is cutting the nose to spite the face,” which has caused him to “trash” his traditional valuation approach. He is moving to a EV/revenue-weighted approach with 11.0x and 10.5x one- and two-year multiples, respectively. Shares were bid up in the premarket and opened at an all time high of $198.13, but immediately traded down to its current price of 194, which is still up 2.6 percent from Friday's close.