Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Allscripts Still In The Middle Of A Challenging Transition

The executive management team at healthcare IT company Allscripts Healthcare Solutions (NASDAQ:MDRX) has already accomplished quite a bit to its credit. Product quality has improved, clients have better product roadmaps, and higher investments in R&D should enhance the company's long-term competitiveness. The company has also carved out a solid position in the emerging population health space.

All of that said, Allscripts has just kept pace with Cerner (NASDAQ:CERN) over the past one to two years, and lagged growth darling athenahealth (NASDAQ:ATHN). Not only is the healthcare IT space brutally competitive in the largely penetrated acute care setting, but the company has not yet proven that its transition to a recurring revenue model (including SaaS)...

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