Research analysts at Jefferies have upgraded their rating on athenahealth, Inc (ATHN) from Underperform to Hold. Analyst David Windley also revised the stock’s price target up from $135 to $145.
“We think the bull case over-estimates the margin potential, and we remain cautious enough not to recommend buying. However, we also don’t think investors should look a -30% “gift horse” in the mouth. Even 1Q’s shaky results may be overwhelmed by the inpatient market opportunity and formalized Coordinator Enterprise partnerships to pursue it.” Jefferies said in a note to clients
“We believe that the sell-off from early-March through mid-April is sobering enough to prevent a rapid return to $200. On the other hand, we don’t expect the market to suddenly focus intensively on ATHN’s near-term profit performance (which hasn’t been strong), either. We wouldn’t be surprised by some selling pressure in ATHN on Monday. The results were sloppy. However, we would be surprised if it closed below the $135 recent low” it added
Shares of athenahealth, Inc (ATHN) closed at $145.58 on Thursday.