UPDATE: J.P. Morgan Lowering Price Target On MedAssets (MDAS)

J.P. Morgan Chase & Co. is lowering its price target on shares of MedAssets MDAS to $18 from $20, and it has a Neutral rating on shares. In a note to investors, J.P. Morgan writes, "MDAS reported adjusted non-GAAP EPS of $0.17, $0.02 ahead of our estimate and $0.01 ahead of consensus. Revenue of $136M was slightly ahead of our expectation/consensus. Earnings upside was driven largely by lower operating costs including a $0.01 benefit from a longer amortization period for capitalized software. 2011 earnings appear to be more back-end loaded than we previously anticipated, which increases the story's risk profile in our view, and we remain on the sidelines at this time." J.P. Morgan goes on to say, "We believe MDAS remains a show-me story given poor execution on the RCM side and weak guidance issued in February, and 1Q results did little to make us more optimistic. We continue to watch for signs of improved performance, but with earnings more back-end loaded than we previously anticipated, we remain on the sidelines at this time." Shares of MDAS closed at $16.00 yesterday.