Zacks Investment Research upgraded shares of Merge Healthcare Incorporated (MRGE) from UNDERPERFORM to NEUTRAL on June 20, 2014, with a target price of $2.25.
Merge's reported first-quarter 2014 adjusted earnings per share of $0.03, rebounding from the $0.03 per share loss incurred in the year-ago quarter. Pro forma revenues declined 19.9% to $51.1 million lagging the Zacks Consensus Estimate of $52 million. A dismal performance over the past few quarters and falsification of the company's subscription backlog in its eClinical business continued to raise negative sentiments. Notably, the growth prospects of the company are highly dependent on the capital investment environment at hospitals and reimbursement rates. Yet, we cannot overlook the consistent contract wins and bookings growth. Moreover, the growth in subscription backlog was healthy as the subscription-based model gained traction. The huge market opportunity for its platforms is also encouraging. Evidently, Merge has several positive catalysts to drive growth. Accordingly, we upgrade the stock to Neutral.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Merge Healthcare Incorporated (MRGE),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment