Morgan Keegan Lowering PT On MDRX To $24

Morgan Keegan has lowered its price target on Allscripts Healthcare Solutions MDRX from $27 to $24 but is maintaining its Outperform rating on the stock. In its report, Morgan Keegan states, “MDRX has a huge physician billing software footprint that it should leverage as the government EHR program plays out. 1H:11 bookings growth in the low single digits should accelerate dramatically in 2H:11 to 25-30% as physicians start to contract in mass and international contributes. Maintain an Outperform rating at 19x our 2011 estimate versus the HCIT group at 36x, with a $24 price target.” MDRX closed yesterday at $16.74.