Goldman Sachs Revises Price Target for athenahealth and Emdeon (ATHN, EM)

Goldman Sachs published a research note earlier this morning on the Healthcare Technology sector. The report highlighted continuing market weakness and revised the firm's price targets for athenahealth and Emdeon in order to account for "higher equity risk premium." athenahealth ATHN's six-month price target was lowered from $34 to $29, a 14.7% drop. The analysts maintained their earnings estimates and neutral rating, but noted that the stock has been troubled this year due to "accounting changes/restatements, management turnover, and weak 1Q2010 results." Emdeon EM's six-month price target was lowered as well, from $19 to $15, reflecting a 21.1% fall. Goldman held to their neutral rating and earnings estimates for Emdeon as well, but noted the stock's difficult-to-explain underperformance, stating that "investors may look to soft 1Q2010 results, but we disagree as the impact from a weak flu season and severe weather were prevalent across healthcare and not a fundamental issue for the company."