CERN - Cerner receives two-notch downgrade at BofA on catalyst drought

"Struggling to find catalysts" to drive upside to growth expectations, BofA cuts Cerner (CERN) from Buy to Underperform.Analyst Michael Cherny notes that Cerner has a mature core business and newer growth opportunities offer "longer-dated potential contribution."Cerner's valuation isn't stretched but also doesn't have much wiggle room for upside relative to its multi-year average, says Cherny.The analyst still sees Cerner as "one of the clear market leaders across health IT/EHRs" and says the VA contract roll out and multi-year margin expansion should support double-digit growth. But these positives are "fairly well known and understood."Price target drops from $82 to $76.Cerner shares are down 1.3% pre-market to $79.38.Upcoming event: Cerner will report Q4 results on February 10.

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Cerner receives two-notch downgrade at BofA on catalyst drought