Athenahealth Now A Strong Buy: Should You Add The Stock?
Zacks Investment Research | Apr 06, 2017 09:32PM ET
On Apr 5, athenahealth (NASDAQ:ATHN) was raised to a Zacks Rank #1 (Strong Buy). Headquartered in Watertown, MA, athenahealth provides exclusive services that manage administrative duties of medical providers through its cloud-based network.
The estimate revision trend for the company is pretty favorable with one estimate going up and no movement in the opposite direction over the last 60 days for both current and next year. The Zacks Consensus Estimate for full-year 2017 earnings remained stable at 44 cents per share over the last two months.
Over the last one month, the stock outperformed the broader markets with respect to price. Notably, athenahealth gained 1.5%, comparing favorably with the S&P 500’s loss of 0.2%. However, the current level lags the Zacks classified Medical Information Systems sub-industry’s gain of roughly 5%.
Key Catalysts
First, athenahealth’s huge client base and solid network expansion in the athenaCollector, athenaClinicals and athenaCommunicator platforms are major positives.
In the last reported quarter, the company registered 1,366 new active physicians in athenaCollector, compared with 2,148 in the year-ago quarter.
Second, acquisitions have helped athenahealth fortify its position in the inpatient market and compete with big names in the electronic health record software and the niche space.
The strategic partnership with Tandigm Health and the buyout of Austin-based Filament Labs are notable developments that are likely to drive revenues. Further, the recent partnership with OurHealth is expected to expand the company’s operations across the U.S. mid-west and southern regions.
athenahealth, Inc. Price and Consensus
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