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NEW YORK — A Raymond James analyst on Wednesday downgraded shares of hospital software company MedAssets Inc. but boosted the company's price target citing stock valuation.
The move comes a day after MedAssets signed an agreement to sell revenue billing and collection software and services to New Jersey-based St. Barnabas Health Care System. Terms of the deal were not disclosed.
St. Barnabas is a nonprofit group of six acute care hospitals, two children's hospitals, outpatient care centers, nursing and rehabilitation centers, a nursing home, psychiatric hospitals and hospice programs. MedAssets has provided revenue and spending management software to St. Barnabas since 2004.
Raymond James analyst Alexander Y. Draper downgraded MedAssets stock to "Outperform" from "Strong Buy" but boosted the price target to $25 from $23.
Shares gained 10 percent on Tuesday following the announcement. The stock rose 49 cents, or 2.1 percent, to $23.60 Wednesday morning.
"The rating cut reflects the more modest upside relative to our new price target after the stock jumped more than 10 percent following the company's announcement of a long-term transformational revenue cycle management deal with St. Barnabas Health Care System," Draper said in a note to investors.
