Growth Dynamics For ATHN Remain Intact
Analysts at BB&T Capital Markets maintain their "hold" rating on athenahealth Inc (NASDAQ: ATHN).
According to BB&T Capital Markets, “The Healthcare IT sector has had some ugly restatements in the past, many of which were a function of the interpretation of software accounting rules. Thankfully for ATHN, its business model is not built off of a perpetual license model and as such has less exposure to such interpretation.” The analysts believe that the prior methodology was too aggressive “but not to an extent that would severely hinder the fundamentals of ATHN’s business model.”
“The restatement corresponds with a new 12-year performance period, which is appropriate from our vantage point and does reset the table. However, the growth dynamics for the company remain intact, albeit less top line contribution from implementations,” the analysts say. The analysts add that athenahealth’s Q4 results were in-line with the expectations.
