Analyst Note| Debbie S. Wang |
No-moat Allscripts reported first-quarter results that were in line with our expectations, bringing overall revenue to $368 million, about a 12% decline compared with 2020. Despite the top-line softness, improving trends in patient mix and continued discipline in cost management created strong operating leverage, beating FactSet consensus expectations on the bottom line. Although the company has substantially improved its financial positioning thanks to its recent divestitures, we still believe that it competes in a highly crowded market prone to industry consolidation with limited upside catalysts. We are maintaining our $11.40 fair value estimate and no-moat rating.