Deutsche Bank Gives Color On Cerner Following Analyst Day

Key takeaways from Cerner's CERN multi-year period, on the back of Stage 2/3 MU definition, ICD-10 implementation and increased regulatory complexity; New growth initiatives to sustain growth beyond the stimulus; Management remains committed to driving sustained growth through a continued focus on innovation. While Deutsche Bank remains positive on CERN's growth
prospects, a fair valuation causes it to reiterate a Hold rating and $105 PT.

Stimulus to drive meaningful growth over a multi-year period Management noted that the stimulus opportunity is a multi-year phenomenon, which should allay investor fears of a slowdown post the initial wave of EHR adoption. Factors driving this multi-year growth include MU Phase 2/3 criteria, ICD- 10 adoption, pay-for-quality initiatives and increased regulatory complexity. While bookings momentum remains strong, other notable highlights for 2010 included further penetration of its ITWorks, first two client additions to RevWorks and key partnerships with MedAssets and Ingenix.

CERN is trading lower at $102.13