Bear Stearns Upgrades Cerner to 'Buy'
Bear Stearns upgraded Cerner Corp. (CERN ) to buy from attractive.
Analyst Raymond Falci says he upgraded on recent price weakness, and the company's strong market fundamentals for its product suites, as well as the fact that Cerner has the premier product in the industry. He notes Cerner sells software systems to hospitals. Falci expects a dramatic increase in demand as the public focuses attention on errors that occur in hospitals. He also notes that these errors lead to costs and complications -- or even death. Falci says Cerner's system, which already has been on the market for more than three years, addresses most of these problems. He notes the stock is down more than 20% over the last three month. Falci sees $1.33 2002 earnings per share (EPS) and $1.79 EPS for 2003. He has a $60 12-month target.