Analyst Expects Greater Growth For Athenahealth

NEW YORK (AP) — An analyst for Robert W. Baird and Co. upgraded shares of athenahealth Inc. Tuesday, anticipating further growth for the clinical software maker over the next few years.

Analyst Eric Coldwell upgraded athenahealth shares to "Outperform" from "Neutral," and raised his price target to $46 per share from $37. The target suggests Coldwell believes the stock will rise about 22 percent over the next year. He said shares of the Watertown, Mass., company are inexpensive when the potential profits, revenues and margins are considered.

Athenahealth sells practice management software called athenaClinicals, and billing software called athenaCollector. Coldwell said athenaCollector "stands apart from competition" and said the company is winning over new practices because its software is helping them collect money from patients more quickly. Athenahealth is improving its own performance, and Coldwell believes profit, revenue and profit margins should grow substantially.

In afternoon trading, the stock added 95 cents, or 2.5 percent, to $38.61.