Citi Has Buy Rating On Allscripts Healthcare Solutions (MDRX)

Citi Investment Research has a Buy rating and a $25 price target on shares of Allscripts Healthcare Solutions MDRX. In a note to clients, Citi writes, "Allscripts, like Cerner, illustrates that the best performing HCIT businesses have a high degree of revenue and earnings visibility. It would take unusual customer churn or a change in the market of sales trends to cause a big miss at the revenue line, and we believe management could likely respond to a change in time to achieve earnings targets. Allscripts' backlog coverage on revenue is now almost two years, excluding longer duration maintenance contracts. More than 2/3 of Allscripts revenue is recurring and the company has more than 80% revenue visibility at the start of any given year." Shares of MDRX are down 33 cents in pre-market trading to $21.25, a loss of 1.5%.