UPDATE: Goldman Sachs Resumes Coverage on athenahealth with Neutral Rating, $94 PT on Balanced Valuation

In a report published Tuesday, Goldman Sachs analyst Robert P. Jones resumed coverage on athenahealth ATHN with a Neutral rating and $94.00 price target. In the report, Goldman Sachs noted, “Unlike CERN and MDRX, ATHN is largely a Revenue Cycle Management (RCM) vendor with 80% of its revenue tied to its cloud-based athenaCollector RCM product. The company largely serves the physician market, and with just 2% of market share by collections, (and 4% by physicians), we believe ATHN still has an attractive runway in the category. Meanwhile, the company is making strides to effectively diversify its revenue streams, with other offerings like athenaClinicals, its EMR product. That said, accelerating provider consolidation poses risks to ATHN's top-line growth as large physician practices and large hospitals continue to consolidate the small physician segment. Furthermore, with shares trading at the high end of 3 and 5 year metrics, we believe current valuation is balanced. We therefore resume coverage at Neutral with 11% upside potential to our $94, 12-month price target.” athenahealth closed on Monday at $84.55.