UPDATE: Goldman Sachs Resumes Allscripts Healthcare Solutions at Neutral Awaiting Recovery Indication

In a report published Tuesday, Goldman Sachs analyst Robert P. Jones resumed coverage on Allscripts Healthcare Solutions MDRX with a Neutral rating and $15.00 price target.

In the report, Goldman Sachs noted, “With the company's bookings in 2012 impacted by integration and operational issues following its 2010 merger with Eclipsys, a leading hospital EMR vendor, and concerns over management continuity, we are encouraged by the recent management changes and launch of Sunrise 6.0. That being said, while recent management changes – including the appointment of Paul M. Black, a former CERN COO – have been well received by investors, we have yet to see an improvement in results with 2013/2014 estimates 16%/9% lower YTD. Should the company struggle to maintain its hospital EMR base, it could see difficulty in participating in the next wave of HCIT opportunities and even see risks to its ambulatory base, given what seems to be hospitals consolidating their entire clinical footprint under one roof. Meanwhile, shares are up 51% YTD (S&P +11%), with valuation now already reflecting prospects of a turnaround in our view. We therefore resume coverage at Neutral pending more clear indication of a sustained recovery.”

Allscripts Healthcare Solutions closed on Monday at $13.86.