UPDATE: Imperial Capital Maintains Outperform Rating, Lowers PT for Merge Healthcare

In a report published earlier today, Imperial Capital, LLC maintained its Outperform rating for Merge Healthcare, Inc.

but lowered its price target from $8.50 to $5.00. Imperial Capital went on to say “We believe that Merge's guidance of 2012 revenue growth, despite switching to a subscription model, is bullish, as its original guidance assumed upfront licensing revenues that were back-end loaded. Because most of these contracts take 12 to 18 months to develop, we believe it is likely that management revenue guidance is realistic due to visibility of contracting. We also note that management did not stress on its earnings call that the company will offer both the subscription and license models, but will lead with the subscription model for sales; whereby it is increasing its ability to remain competitive and close deals potentially sooner.” Merge Healthcare, Inc. closed yesterday at $2.83.