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Goldman remains bullish on Cerner after Q3 top-line miss

  • Goldman is sticking with its Buy rating on Cerner (CERN -2.4%) despite consecutive quarters of below-consensus top-line results.
  • "CERN's Q4 bookings guide of $1.0-$1.1B comfortably captured the Street and should diminish concerns for potential deceleration in bookings," analyst Robert Jones notes, adding that Goldman "expects [CERN's] several high-profile partnerships to lend support to more EMR replacement/RCM contract wins and assist in further distancing [the company] from competition in its population health capabilities."
  • Price target is $63, which, after today's losses, represents an 11.7% upside.
  • "Are you seeing actually more RFPs at this point in the wake of the Intermountain win? And just how should we be contemplating the pace of additional wins from here?," Jones asked, on CERN's call. "It enhances the whole competitive process, and our pipeline is at an all-time high... the business feels very strong," President Zane Burke responded. (transcript)
  • More: CERN earnings highlights
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