Oppenheimer Raising Target On Allscripts-Misys Healthcare Solutions (MDRX)

Oppenheimer & Co. is raising its price target and earnings estimates on shares of Allscripts-Misys Healthcare Solutions, Inc. MDRX after a secondary offering last week. It has a $22 price target, up from $20. In the research, Oppenheimer writes, "We officially raise our estimates for MDRX, in line with our MDRX/ECLP proforma model, following shareholders approval on 8/13 and completion of secondary offering earlier last week. We expect the deal to close shortly, as MDRX also repurchased 24.4M shares from Misys and finalized on $470M term loan and $250M revolver. We continue to believe that the MDRX/ECLP combination is strategically sound and the two platforms should integrate well. Our recent CIO survey and follow-up conversations with CIOs were generally favorable, as interoperability between inpatient and ambulatory systems will be a big factor in MU Stage 2 and 3. We raise our PT to $22, which assumes shares can trade at about 24x our proforma CY11 EPS estimate of $0.93." Shares of MDRX are up 6 cents to $17.31 in early Tuesday trade.