Cloud disruption has been evident across many industries lately; however, there remains a gap within healthcare, which could pose some serious potential.
“Genuine cloud disruption has not yet occurred in U.S. healthcare due to heavy influence of government mandates and pay-for-performance programs,” said KeyBanc.
The influence of these government programs is rapidly fading. Combined with the disruptive potential likely to be seen from the new presidential administration, the time may be right for more market-based demand for Healthcare IT products and services.
A Look At Athenahealth
Athenahealth, Inc ATHN has a major source of upside in its ability to extend cloud services “across the entire continuum of care, as well into completely new areas,” added Keybanc.
“This inflection of HCIT demand should relatively favor ATHN’s single-instance, multi tenant cloud based model,” said KeyBanc.
The Seattle-based bank upwardly revised the company’s adjusted EBITDA estimate to $389 million.
KeyBanc upgraded athenahealth to Overweight, with a $140 price target.
At last check, athenahealth shares were up 5.45 percent on the day at $114.47.
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