Banc of America Boosts WebMD to 'Buy'
Banc of America upgraded WebMD (HLTH ) to buy from market perform and set a $10 price target.
Analyst Patrick Hojlo says the firm has extremely valuable assets and market leading positions in its key businesses. He says the key businesses are: electronic processing of health insurance claims -- over two billion claims annually; physican practice management software used by 180,000 doctors in US; and the Webmd.com Web site, which should generate north of $80 million in revenue this year.
Hojlo Says the firm is in the midst of what will prove to be a successful turnaround. He sees a $0.27 2001 loss on revenues of $748 million, and $0.05 2002 EPS on revenues of $898 million.