2023-08-28 13:19:34 ET
Cantor Fitzgerald has initiated coverage of healthcare IT provider NextGen ( NASDAQ: NXGN ) with an overweight rating, citing the company’s “attractive investment profile” which it doesn’t believe is fully reflected in its current multiple.
The investment bank said it saw NextGen's offerings as “well positioned” for an expected shift in US healthcare to value-based care and shared savings models. It added that the “network effect” of its widely installed MirthConnect health data platform allows the company to “outpace” market growth in the value-based care support tools market.
“We believe the company’s balanced approach to revenue and margin growth, high recurring revenue mix and well-capitalized balance sheet create an attractive investment profile,” the bank added.
Cantor set a price target of $21 for the stock.
More on NextGen Healthcare
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- NextGen Healthcare Sees Higher Growth Ahead Amid Operating Improvements
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- NextGen Healthcare up 4% after-hours following increased revenue guidance
- NextGen to acquire TSI Healthcare for $68M upfront
- Seeking Alpha’s Quant Rating on NextGen Healthcare
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- Dividend for NextGen Healthcare
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Cantor starts NextGen at overweight, cites "attractive" investment profile