MDRX - Allscripts Healthcare Solutions: A Mini Salesforce In Healthcare IT Making All The Right Moves

• Allscripts looks like a relatively solid investment bet in the healthcare IT sector that has grown its share price by 140% in the past 12 months.
• Share price growth has stagnated in recent months perhaps owing to a modest revenue forecast of $1.5bn in FY20 - the same as in FY20.
• Allscripts offloaded its CarePoint business - which earned ~$100m of revenues per annum - for $1.35bn at the end of FY20.
• The company works closely with Microsoft as a collaboration partner and I wonder if it could become an acquisition target for the IT giant.
• A share buyback program, profitability through cost efficiencies, and potential to drive long-term top line growth at ~5% push Allscripts valuation to $20-25 per share - a premium to the current price of $15.6 - in my view.

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