JMP analyst rates AthenaHealth "outperform"

A JMP Securities analyst said AthenaHealth of Watertown will gain revenue as physician practices replace their management systems, and started coverage with a "market outperform" rating.

Constantine Davides said about 10 percent of practices will replace their practice management systems in the next few years. The online systems are used to handle billing, scheduling and patient administration, and Davides said AthenaHealth's athenaCollector system can stand out from other options.

He expects revenue to increase as the athenaClinicals business gains new subscribers, and added that the company has been very successful at retaining customers.

AthenaHealth Inc. shares finished at $23.00 yesterday, and Davides expects them to rise to $28 over the next year. (AP)