Shares of electronic health records company Allscripts-Misys Healthcare Solutions Inc. rose to their highest price in nearly two years Wednesday after the health records company reported quarterly results above analyst estimates.
In afternoon trading, the stock gained 78 cents, or 4 percent, to $20.17. Earlier, the shares were up to $20.61, their highest price since December 2007.
The company late Tuesday reported fiscal first-quarter income of 15 cents per share excluding items, narrowly topping Wall Street projections. Revenue beat estimates, too.
Frank Sparacino of First Analysis Securities said bookings rose almost 50 percent in the quarter. "This strength is being driven by demand from large health systems and physician practices," Sparacino said in a note to clients.
Stifel Nicolaus analyst Todd Weller said Allscripts-Misys is getting most of its business from larger physician practices, and he expects it to win more support from smaller practices over time as more funds from the federal economic stimulus package are disbursed.
Both analyst kept "Buy" ratings on the Chicago-based company. Weller raised his share price target to $25 from $21.