3/17/2010-Citigroup maintained its Sell rating on Athenahealth (NASDAQ:ATHN) and its $35 price target, though it lowered its EPS estimates on lower implementation revenue.
Analyst Charles Boorady said, "On the earnings call, management reiterated 30+% revenue growth target each year, but also stated greater investment in selling and marketing in 2010 than in 2009, especially in 1H primarily to increase awareness and sales representatives. An increase in S&M as % of revenue is greater than our previous estimate due to scalability expectations from 2011 target margins given by management at the December Investor Day."
For 2010, the bank lowered its EPS estimate from $0.74 to $0.63, versus consensus estimates of $0.83.
For 2011, Citi lowered its EPS estimate from $1.03 to $0.93, versus consensus estimates of $1.31.
Keywords: Athenahealth Citigroup rating Target estimates
Ticker(s): ATHN
