Analysts’ Weekly Ratings Changes for Cerner (CERN)

Cerner (NASDAQ: CERN) has recently received a number of price target changes and ratings updates:

  • 2/8/2018 – Cerner was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Cerner has had an unfavorable run on the bourses over the last year. However, the company witnessed record bookings in the quarter and also a strong cash flow. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. The company performed impressively in the small hospital markets lately. On the flipside, lower margins on technology resale, resulting from higher mix of device resale is a concern. Additionally, Cerner has been facing macroeconomic challenges along with cutthroat competition in niche space. Expensive valuation and surging operating expenses also add to the woes.”
  • 2/7/2018 – Cerner had its “buy” rating reaffirmed by analysts at Royal Bank of Canada. They now have a $76.00 price target on the stock.
  • 2/7/2018 – Cerner had its price target lowered by analysts at Cantor Fitzgerald from $83.00 to $80.00. They now have an “overweight” rating on the stock.
  • 2/7/2018 – Cerner had its price target lowered by analysts at Robert W. Baird from $80.00 to $75.00. They now have an “outperform” rating on the stock.
  • 2/7/2018 – Cerner had its “buy” rating reaffirmed by analysts at Canaccord Genuity. They wrote, “We reiterate our BUY rating and raise our PT to $73. Not without noise on 4Q’17 and updated guidance, CERN continues to perform in new business wins. Bookings performance was stellar, up 62% y/y on large Works wins with solid growth across many product areas. The delayed Veterans Administration signing and some pre-revenue project investment will likely pressure margins near-term, but will be more than offset on the bottom-line from the tax reform benefit. We normally would be more critical on near-term margin compression; however, given bookings strength and benefits from tax reform, we recommend investors continue to own shares and add to positions. Key positive: Bookings grew 62% to $2.3B, outperforming us and cons. both at $1.8B. 1Q’18 bookings guidance straddled our estimate and con.””
  • 2/7/2018 – Cerner was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $71.00 price target on the stock. According to Zacks, “Cerner ended the fourth quarter of 2017 on an unfavorable note, missing the Zacks Consensus Estimate on both counts. However, the company witnessed record bookings in the quarter and also a strong cash flow. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. The company performed impressively in the small hospital markets lately. On the flipside, lower margins on technology resale, resulting from higher mix of device resale is a concern. Additionally, Cerner has been facing macroeconomic challenges along with cutthroat competition in niche space. Expensive valuation and surging operating expenses also add to the woes.”
  • 2/7/2018 – Cerner had its price target lowered by analysts at SunTrust Banks, Inc. from $68.00 to $2.82. They now have a “hold” rating on the stock.
  • 2/2/2018 – Cerner was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Cerner has had an impressive run on the bourses in the last year, trading above the broader industry. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
  • 1/31/2018 – Cerner was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $78.00 price target on the stock. According to Zacks, “Cerner has had an impressive run on the bourses in the last year, trading above the broader industry. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
  • 1/24/2018 – Cerner was downgraded by analysts at BidaskClub from a “hold” rating to a “sell” rating.
  • 1/18/2018 – Cerner is now covered by analysts at Evercore ISI. They set an “in-line” rating and a $77.00 price target on the stock.
  • 1/16/2018 – Cerner was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Cerner has had an impressive run on the bourses in the last year, trading above the broader industry. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
  • 1/16/2018 – Cerner was downgraded by analysts at SunTrust Banks, Inc. from a “buy” rating to a “hold” rating. They noted that the move was a valuation call. They noted that the move was a valuation call.
  • 1/9/2018 – Cerner was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $79.00 price target on the stock. According to Zacks, “Cerner has had an impressive run on the bourses in the last year. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been facing macroeconomic challenges lately. Unfavorable political scenario and expensive valuation may add to worries. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
  • 1/5/2018 – Cerner had its price target raised by analysts at Cantor Fitzgerald to $83.00. They now have an “overweight” rating on the stock.
  • 1/4/2018 – Cerner was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “Cerner has had an impressive run on the bourses in the last year. We believe that the company has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record of adding new clients. Solid growth in the HealtheIntent platform also holds promise. Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. However, Cerner has been faceing macroeconomic challenges lately. Unfavorable currency translation is also expected to weigh on its sales and earnings in the coming quarters. In recent times, Cerner’s System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
  • 1/4/2018 – Cerner is now covered by analysts at Citigroup Inc. They set a “neutral” rating on the stock.
  • 1/3/2018 – Cerner had its “buy” rating reaffirmed by analysts at Robert W. Baird.
  • 12/26/2017 – Cerner was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “We believe that Cerner Corporation has growth opportunities in the revenue cycle management (RCM), Population Health and ambulatory markets based on its product strength and enviable track record.Additionally, a growing percentage of higher margin software in the business mix is expected to drive margins. The company performed impressively in the ambulatory and small hospital markets lately. Cerner has had an impressive run on the bourses in the last year.  However, Cerner Corporation faces currency headwind and macroeconomic challenges. Unfavorable currency translation is also expected to weigh on its sales and earnings in the coming quarters. In recent times, System sales witnessed a major deterioration owing to a decline in technology resale. Furthermore, the HCIT market is highly competitive, which exerts considerable pressure on both pricing and margins.”
  • 12/22/2017 – Cerner was downgraded by analysts at BidaskClub from a “buy” rating to a “hold” rating.

Cerner Co. (CERN) opened at $61.31 on Monday. The company has a quick ratio of 2.99, a current ratio of 3.01 and a debt-to-equity ratio of 0.11. Cerner Co. has a 1-year low of $51.26 and a 1-year high of $73.86. The stock has a market cap of $20,380.36, a price-to-earnings ratio of 23.86, a price-to-earnings-growth ratio of 1.84 and a beta of 0.90.

Cerner (NASDAQ:CERN) last released its quarterly earnings results on Tuesday, February 6th. The company reported $0.58 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.61 by ($0.03). Cerner had a return on equity of 16.82% and a net margin of 16.86%. The firm had revenue of $1.31 billion during the quarter, compared to analysts’ expectations of $1.33 billion. During the same period in the prior year, the firm posted $0.61 earnings per share. Cerner’s revenue for the quarter was up 4.5% compared to the same quarter last year. sell-side analysts anticipate that Cerner Co. will post 2.42 EPS for the current fiscal year.

In other news, VP Michael R. Battaglioli sold 4,000 shares of Cerner stock in a transaction on Wednesday, December 13th. The shares were sold at an average price of $69.89, for a total transaction of $279,560.00. Following the completion of the sale, the vice president now directly owns 4,000 shares in the company, valued at $279,560. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Clifford W. Illig sold 140,000 shares of Cerner stock in a transaction on Thursday, November 16th. The stock was sold at an average price of $65.52, for a total transaction of $9,172,800.00. Following the sale, the chief executive officer now owns 1,229,719 shares of the company’s stock, valued at $80,571,188.88. The disclosure for this sale can be found here. Insiders sold 784,000 shares of company stock worth $51,926,960 over the last ninety days. Corporate insiders own 13.11% of the company’s stock.

Cerner Corporation (Cerner) is a supplier of healthcare information technology (HCIT). The Company offers a range of intelligent solutions and services that support the clinical, financial and operational needs of organizations of all sizes. The Company’s segments include Domestic and Global. The Domestic segment includes revenue contributions and expenditures associated with business activity in the United States.

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