Cerner Reports Strong 4Q, JP Morgan Raises PT To $115

JP Morgan has published a research report on Cerner Corporation CERN after the company reported strong 4Q results. In the report, JP Morgan writes "4Q bookings of $626M were well ahead of our $510M forecast and company guidance of $490-530M. The number of contracts signed in excess of $5M was 22 (in line with last quarter's record), including 13 in excess of $10M. Approximately 26% of bookings came from new clients, indicating the company continues to grow its footprint outside the core base of medium/large hospitals into small hospitals, which is where we believe the bulk of the greenfield opportunity is at this time. Qualitative commentary on competitive wins (“rebounds”) remains positive, and could be a source of upside to 2011 estimates." JP Morgan maintains its Overweight rating and has raised the price target from $110 to $115. Cerner Corporation closed yesterday at $100.63.