Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

The following ratings changes were generated on Wednesday, March 25.

We've downgraded Athenahealth ( ATHN), which provides Internet-based business services for physician practices in the U.S., from hold to sell.

The company reported significant earnings-per-share improvement in the most recent quarter compared with the same quarter a year ago, though we anticipate underperformance relative to its pattern over the past year of positive EPS growth. Athenahealth's gross profit margin of 59.1% has increased from the year-ago quarter, and its 49.7% net profit margin outperformed the industry average. Net operating cash flow increased 71.8% to $6.4 million compared with the year-ago quarter.

Shares have risen over the past year, outperforming the S&P 500 over the same time frame. Looking ahead, the stock's rise over the last year has already helped drive it to a level that is relatively expensive compared to the rest of its industry, implying reduced upside potential.

We've upgraded open-end unincorporated investment trust Baytex Energy Trust ( BTE) from sell to hold. Strengths include the company's EPS growth, growth in net income and return on equity. However, we also find weaknesses including operating cash flow, the performance in the stock itself and debt management.

EPS rose by 10.4% in the most recent quarter compared with the year-ago quarter. Net income increased by 26.7% to $52.4 million, from $41.4 million. Revenue fell by 16.5%. Net operating cash flow declined 1.7% to $98.4 million.

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