NXGN - NextGen raised to overweight at Cantor on improving fundamentals

In recent Q3 financial results for fiscal 2021, NextGen Healthcare (NXGN) beat the consensus on both revenue and EPS.However, the company’s top-line rose only ~2.9% YoY compared to ~5.3% YoY in the prior-year quarter while the GAAP net income dropped to reach slightly above a tenth of the level in the corresponding period last year.Yet, Cantor Fitzgerald analyst Steven Halper has upgraded the stock to overweight from neutral noting a compelling share price given the recent weakness.The price target raised to $23.00 from $20.00 per share implies ~25.8% upside to the previous close, and shares have gained ~7.4% today in the premarket so far.Noting ‘improving fundamentals’ at the company over the past few quarters, the analyst argues that the company is ‘taking the right steps to improve long-term performance.’With a solid gain in the bookings, the company’s telehealth capabilities ‘appear to be gaining strong traction,’ Halper writes identifying the function as a ‘key selling point in new deals.’Bookings

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NextGen raised to overweight at Cantor on improving fundamentals