Deutsche Bank Reinstating Coverage On Allscripts (MDRX)

Deutsche Bank is reinstating its coverage on Allscripts MDRX, after the company merged with Eclipsys. It rates shares at Hold, and has a $19.50 price target. In a note to clients, Deutsche Bank writes, "ECLP transaction may yield upside but valuation and risks currently balanced We have reinstated coverage of Allscripts with a Hold rating and a $19.50 price target. We view the combination of Allscripts and Eclipsys as a positive for hospitals and physicians, providing an integrated solution scaling the entire market. Additionally, the combination, combined with Eclipsys' previous efforts, will help drive cost synergies that could provide upside to estimates. While we think there is a somewhat positive bias to our estimates (particularly synergy-driven), limited upside and a risk-averse market causes us to have a Hold rating." Shares of MDRX gained 36 cents to close at $17.02.