UPDATE: Canaccord Genuity Starts Cerner (CERN) at Buy

Canaccord Genuity initiated coverage on Cerner (NASDAQ: CERN) with a Buy rating and a price target of $73.00. With shares off highs, analyst Richard Close sees attractive risk-reward.

"With shares nearly 17% off their 52-week high and only 12% above the 52-week low, the risk/return scenario looks attractive for Cerner – especially in light of the recent downward revenue guidance revisions that could portend a lower bar for 2H15 and a return to a beat-and-raise scenario," said Close.

Close added, "Cerner is the only pure-play large-cap Health IT company with a market cap of ~$21B, FY15E revenue of ~$4.5B, a $4.8B bookings run rate and $13B in backlog. Cerner’s financial strength enables it to commit significant R&D resources (~$4B expected from ’15-’20) to add innovative products and services that empower customers to maneuver through rapidly changing healthcare environment. We expect Cerner to achieve double-digit revenue growth and 15-20% earnings growth over the next several years driven by (1) share gains in an EHR replacement cycle; (2) adoption of population health management/value-based care technologies and services; and (3) global expansion."

For an analyst ratings summary and ratings history on Cerner click here. For more ratings news on Cerner click here.

Shares of Cerner closed at $62.64 yesterday.

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