Investors may be overlooking the opportunity that athenahealth, Inc (ATHN) currently has in front of it, according to Stephens Inc. Analyst Mohan Naidu. He says that athenahealth is getting beat up along with many other names in the tech space, which are primarily high-multiple cloud names.
“Athena is probably the single biggest player with a big technology advantage compared to any other physician vendor in this space,” Naidu says. “What that is doing for athena is, number one, they are getting into a lot of larger deals, which is good. They are slowly making their way into the physicians and making their way into the hospitals, and also gathering a lot of momentum in the larger practices, which is really good.”
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Naidu says that because of athena’s technology advantages, the company can introduce new services and technology much faster than a traditional software vendor.
“With the SaaS technology advantage for athena, they can just turn it on in their central system, and it will start working for everybody, and they can look at which services are getting more traction than others, and they can just figure out usability and all that,” Naidu says. “So there is a huge technology advantage for athena, and their efforts toward care coordination both inside and outside of the hospitals — if that works, I think that’s going to be a huge game-changer for athena because of the large market opportunity that they have. That’s why I like athena.”