Piper Sees Upside in athenahealth Shares Following Tenet, Vanguard Deal

According to Piper Jaffray analyst Sean Wieland, athenahealth ATHN shares could be in for some significant upside following the deal with Tenet THC and Vanguard Health VHS. Wieland is modeling for athena to possibly get up to $10 million a year in added sales if Vanguard picks the company as a provider of an ambulatory platform. He sees athena losing up to $5 million per year if Vanguard selects McKesson's MCK instead. Wieland called athena's product a "better, more integrated" offering. Wieland maintains an Overweight rating and $104 price target on shares of athenahealth. While shares of Tenet and Vanguard are up 5 percent and 68 percent, respectively, shares of athenahealth are down 0.4 percent to $89.76 at last check.