Skip to main content

Market Overview

Why BofA Is Double Downgrading Cerner: 'Not Much Room For Upside'

Why BofA Is Double Downgrading Cerner: 'Not Much Room For Upside'

Cerner Corporation’s (NASDAQ: CERN) long-term growth is likely to be slightly lower than was earlier anticipated, and there is lack of a “possible novel catalyst” to drive share price appreciation, according to BofA Securities.

The Cerner Analyst: Michael Cherny downgraded Cerner from Buy to Underperform and lowered the price target from $82 to $76.

The Cerner Thesis: The company is still among the market leaders across health IT and electronic health records, Cherny said in a Tuesday downgrade note.

Cerner could sustain growth and leverage its installed base to move into more strategic growth areas “over a multiyear period,” the analyst said. 

Additional contributions from the rollout of the company's Veterans Affairs contract should also support double-digit growth, he said.

These catalysts are already well-understood, and the next opportunity for upside is unclear “given the maturity of the traditional core business and the longer-dated potential contribution from the newer growth opportunities,” Cherny said. 

“Additionally, we see CERN’s valuation as not necessarily stretched but also not leaving much room for upside vs. its multi-year average. We do not foresee meaningful stock downside from here but also do not have enough upside to warrant a more constructive stance.”

CERN Price Action: Shares of Cerner were down by 0.94% at $79.46 at last check. 

Cerner headquarters. Photo by Americasroof via Wikimedia

Latest Ratings for CERN

Feb 2021Piper SandlerMaintainsOverweight
Feb 2021Morgan StanleyMaintainsUnderweight
Feb 2021UBSDowngradesBuyNeutral

View More Analyst Ratings for CERN
View the Latest Analyst Ratings


Related Articles (CERN)

View Comments and Join the Discussion!

Posted-In: BofA Securities Michael ChernyAnalyst Color Downgrades Price Target Analyst Ratings

Latest Ratings

MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
DPZRBC CapitalMaintains428.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at