Cerner cut to sell by Evercore

Cerner downgraded to Underperform at Evercore ISI on business mix shift. As reported earlier, Evercore ISI analyst Ross Muken downgraded Cerner to Underperform from In Line and lowered his price target to $55 from $57. The analyst notes that much of the investment debate has centered around the “population health opportunity, and the potential contribution from the optically sizable DoD and VA contracts”, but his deeper look into the company unveiled the threat coming from a business model shift to SaaS/cloud, depressing revenue growth and margins for many legacy software vendors. Muken also ctites a “potential incremental competitive threat from ‘Big Tech’ and emerging venture backed vendors in population health and other analytical adjacencies” amid a push toward interoperability which opens data monopolies that Cerner currently enjoys

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