UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on Cerner Corporation on Margin/Earnings Upside

In a report published Friday, Credit Suisse analyst Glen Santangelo reiterated a Neutral rating on Cerner Corporation

, and raised the price target from $88.00 to $95.00. In the report, Santangelo noted, “CERN reported $0.66 vs. FactSet consensus of $0.63. At the risk of sounding like a broken record, CERN reported better than expected bookings, solid operating metrics and strong cash flow, although we would note that a lower than expected tax rate contributed $0.02 to the quarter. Management tone remains bullish on the long-term market opportunity for market share shifts and continued growth as providers & payers grapple with upcoming mandates. From this evening's conference call it is clear that management is intent on furthering CERN's competitive advantages and building upon its analytics/population health & Works platforms leveraging both the company's internal resources/R&D team as well as third party developers. With its strong clinical EHR platform, leading competitive position, and broad product portfolio we believe CERN should be able to capitalize on longer-term growth opportunities, although our enthusiasm remains somewhat tempered by CERN's lofty valuation and persistently high expectations. We are updating our target price to $95 (from $88) which pegs a 27x multiple on our F14 estimate of $3.30 plus credit for $6/share cash.” Cerner Corporation closed on Thursday at $91.66.