The bullish analysts believe that interest in IT related stocks in the healthcare universe remains high following the stimulus package, containing a healthcare information technology (HCIT) component, and as such, MDRX’s current valuation does not fully reflect its earnings potential. While MDRX has traditionally been strong in serving large physician practices, it is now expected to benefit from the rapid adoption of Electronic Health Record (EHR) by small group practices. Further, the merger of Allscripts and Misys substantially expands the combined entity's opportunities in the EHR market as it presents the company with a captive base of 90,000 physicians with no EHR. Cross-selling opportunities to Misys practice management customers give the company a competitive edge in the fragmented EHR industry. The expected return over the current share price is 7.1%.
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