Allscripts Healthcare Retains Buy Rating at Deutsche Bank
Wednesday, September 28, 2021 4:44 PM



Analysts at Deutsche Bank reiterated Buy rating on the shares of Allscripts Healthcare Solutions, Inc. (Nasdaq: MDRX) based on their attractive valuation and solid growth momentum. They set a price target of $24 for the stock.

DB analysts state that with the ECLP integration remaining on track, Allscripts has already achieved nearly $200 million in cross selling synergies and the first client live on the integrated product. They add that the ambulatory market is also performing well, driven by cross-selling as well as increased demand from small hospitals. They estimate the hospital replacement market to comprise of 400 new systems over the medium-term. They state that Allscripts is expected to take advantage of current market opportunities and expect the firm’s Flager to emerge as the winner in the company’s post fierce head-to-head competition. They believe that in the next 3 to 5 years, the company’s core growth is estimated to be 10 percent to 15 percent. They state that as ambulatory growth is modestly above expectations, with smaller docs aiding the firm’s SaaS mix; they expect transactions and maintenance to grow at mid-single- digit rates. They add that the firm’s OM leverage and CF deployment should help the firm’s EPS to expand at 150 percent of core revenue growth. They state that the OM leverage is expected to be driven by reduced implementation expenses, synergy capture, and marketing leverage. They add that the risks involving Allscripts include the ability to integrate Eclipsys products and solutions, an elongation of the sales cycles due to the stimulus, and the potential for spending overruns on internal infrastructure investments needed to maintain growth.

 

On a year-to-date basis, Allscripts Healthcare has a share performance of -4.96 percent and as compared to Standard & Poor’s 500, it has an YTD share performance of 5.18 percent.

 

Allscripts Healthcare provides clinical, financial, connectivity, and information solutions and related professional services to hospitals, physicians, and post-acute organizations primarily in the US. It has a market capitalization of $3.44 billion with a P/E ratio of 24.750. It has more than 187 million outstanding shares.

 

Shares of Allscripts Healthcare fell 1.04 percent or 20 cents to trade at $19.09.

 

 


 

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