Bidness Etc - Zack analysts reiterate hold rating on Cerner stock

Cerner stock got its hold rating reissued by Zacks with target price of $70

On Thursday research note, Zacks issued a rating of Hold on Cerner’s stock with a price objective of $70. Its target price specifies an impending $3.22% downside from the previous stock close.

Analysts at Zack wrote Cerner posted an outstanding result in the last quarter of 2014 surpassing their estimation on both lines. We are enthralled with the strong booking, earnings rise and revenue of the company in the last quarter. The close of Siemens Health services acquisition lately is most likely to expressively improve company’s capabilities by growing its variety of services and solutions and global opportunities. Zacks analysts believe that Cerner is on the urge for growth in 2015, determined by a latest business prospects and a strong pipeline. Though, Healthcare information Technology market is extremely competitive that puts substantial pressure on margins and pricing both. Furthermore, a rising proportion of low margin in technology and services resale will affect the margins more.

A number of research firms have covered CERN stock. Argus research firm analysts escalated their price target to $80 from $73 with Buy rating on Monday. Robert W. Baird updated stock of the company to an outperform rating from neutral and increased target price to $77 from $65 on Wednesday. Royal Bank of Canada analysts surged their price objective to $77 from $70 and assigned outperform rating to the stock. Out of 17 equity research analysts, four gave Hold rating, 12 suggested Buy and only one gave sell rating to the Cerner stock. Currently, CERN has an average price objective of $71.13 and average rating of Buy.

Cerner stock was up by 1.34% in Thursday and reached day maximum of $73.30. Almost 145,834 shares of the company exchanged hands. The company has a 52 week low and high of $48.33 and $74.83 respectively. The 200 and 50 days moving average was $64 and $71 with $25.11 billion of market cap and 48.87 prices to earnings.

The health care company last reported its quarter earnings on 10th February Tuesday. Cerner declared earnings of 47 cents per share for the period similar to analyst projection of 47 cents. It also managed to post $926 million in revenues much higher than the forecast of $904.6 million. In the prior year quarter, earnings of 39 cents per share were reported. Company’s revenue rose by 16.4% on year over year basis. Averagely, analyst believe that the Kansas city based company will managed to post earnings of $2.13 per share for the present year of 2015.