UPDATE: Auriga Raises PT on Computer Programs & Systems from $60 to $78

Auriga has published a report on Computer Programs & Systems Inc. CPSI raising the price target to $78. In the report, Auriga wrote, "We are maintaining our HOLD rating on CPSI (CPSI), raising our price target to $78 (from $60 ) while crediting the company with outstanding Q2 performance in which revenue and EPS trounced consensus and our estimates. What could be considered aggressive forecasting a year ago now appears to have flip-flopped the other direction, as CPSI delivered record numbers of installations ahead of its own expectations. Moreover, the investments in headcount that were made 18 months ago, arguably 2 quarters premature, are now paying off handsomely. As such, CPSI is now seeing not only expansion of its client base, but also increasing activity among new prospects. We believe CPSI enjoys a great opportunity in its small hospital niche due to the stimulus, but remain on the sidelines presently due to valuation." Auriga rated CPSI a HOLD with a price target raised from $60 to $78. Computer Programs & Systems closed Friday at $73.45.