This Healthcare Tech Company Is Mulling Strategic Options, Analyst Gets Bullish On Stock

Cantor Fitzgerald has initiated coverage on NextGen Healthcare Inc NXGN with a price target of $21 and an Overweight rating.

NextGen Healthcare is also exploring various strategic options, including the possibility of a company sale, and hired Morgan Stanley to advise. With a market value of $1.1 billion, NextGen Healthcare is known for its lack of a traditional headquarters due to its remote work culture. 

NextGen offers an extensive health data platform, MirthConnect, integrated into a third of all US Health Information Exchanges and extended across 39 nations. 

The analyst Sarah James notes that the company's suite of offerings is well positioned for the shift of U.S. healthcare into value-based care and shared savings, and the network effect of its broad installed base for MirthConnect as a driver for the company to outpace market growth in VBC technology support tools. 

NextGen is on course, having reached the midpoint of its three-year plan set in 2022 to sell an extra $100 million in products to current clients, specifically surrounding solutions. Cantor analyst anticipates the company meeting these sales targets and views this as the starting phase of potential opportunities within its current clientele.

Price Action: NXGN shares are up 2.17% at $18.34 on the last check Monday.