Please note that we are adding Allscripts (MDRX) to Investing Ideas on the short side today. Hedgeye Healthcare Analyst Tom Tobin will send subscribers a full research report separately explaining our bearish thesis on the stock.
According to Tobin:
"While Allscripts reputation has markedly improved since the dark days of 2012-2013, the reality is that the damage is already done. Many Hospital Executives refuse to include Allscripts in RFPs and estimates of mind share vs. market share do not bode well for bookings growth. Based on industry ratings and anecdotes, the probability of Allscripts unseating the current acute care EMR vendor at any large IDN is low. We will continue to collect anecdotes from industry participants, including current Allscripts customers."
"Way too many investors are currently 'overweight' Healthcare," adds Hedgeye CEO Keith McCullough.