UPDATE: ISI Group Initiates athenahealth at Overweight, $94 PT on Leading Revenue Growth

ISI Group initiated its coverage on athenahealth

with an Overweight rating and a price target of $94 a share. ISI Group noted, "We are initiating coverage on shares of athenahealth with an Overweight rating and a price target of $94.00, which on a forward basis equates to ~6x EV/Revenue and ~75x operating EPS. Our thesis for ATHN is based on best-in-class revenue growth and the ability to sustain that growth through further penetration of the Enterprise market, the opportunity for athenaCoordinator to open up new addressable markets (despite the near-term gross margin drag), and the crucial strategic investments being made to support long-term growth (even with the negative impact on EPS)." athenahealth closed at $80.60 on Wednesday.