UPDATE: Morgan Stanley Reiterates On athenahealth On Margin Expansion Opportunity

In a report published Monday, Morgan Stanley analyst Ricky R. Goldwasser reiterated an Overweight rating on

, but removed the $192.00 price target. In the report, Morgan Stanley noted, “The opportunity for operating margin expansion is one of the key debates for ATHN shares and an important driver of our DCF derived valuation. We have received a number of questions from investors on how we bridge from current op margin profile of 12.4% to our LT forecasts of an adjusted 30% LT. Digging into the numbers, we think ATHN's steady state margins (ex growth initiatives) are already close to the ~20%s mark, reinforcing our thesis that LT a mature ATHN could reach 30%.” athenahealth closed on Friday at $113.02.