- "Investors will eventually tire of paying 100 times flat earnings," Bill Alpert says, referencing the multiple the market is assigning to shares of athenahealth (ATHN).
- Barron's is skeptical of ATHN after the company guided below expectations for both 2014 revenue and EPS.
- "All year, the financial models of bulls like Piper's Sean Wieland were clearly applying a 30% growth expectation to their forecasts for ATHN revenue, not bookings," Alpert notes.
- Barron's seems to suggest that perhaps the company should have corrected what it allegedly knew were mistaken assumptions on the part of the sell-side: "The company waited until last week to tell Wall Street it was applying the 30% growth rate to the wrong number," Alpert writes.
- The piece also suggests ATHN may have an exceptionally difficult time breaking Cerner (CERN) and Epic's stranglehold on the hospital enterprise software market.
at Zacks.com (Oct 29, 2014)