• Badge

    A Decade of Revolution Declare Your Research Independence

Shares of Athenahealth (ATHN) surged higher today after activist investor Elliott Management Corp. bid to acquire the medical company for $160 a share. Elliott, the New York hedge fund led by billionaire Paul Singer, said that it made an all-cash takeover offer, which would value Athenahealth at $6.46 billion.

ATHN has been one of our Healthcare analyst team's top long ideas the past year.

FLASHBACK: Buy ATHN Says Hedgeye Healthcare Analysts  - zat

Here's the timeline of their call.

  • Here is the note on 5/19/17 when we added ATHN as a long on the activist tilt.
  • Here is the note on 7/18/17 we wrote heading into 2Q17 earnings where we said:

“It is hard to get excited about the long into earnings relative to our fundamental expectations and a stock +50% (20x NTM EV/EBITDA) since 1Q17 earnings and Elliott Associates announcing their activist stake.   While we can justify a $175-$200 stock price, we recognize the next leg higher will require several quarters of improved execution and investor confidence in a fundamental turnaround.  That said we remain long in our health care position monitor and would be looking to add to our position on weakness."

  • Here is the note we put out on 10/15/2017 with the stock down and laying out the case for 30-50% upside ($150 - $175) in the stock over the next 12-18 months.
  • Here is the note we put out on 4/27 after earnings saying buy the dip.

Finally, below is a brief clip on ATHN from our Healthcare analyst Andrew Freedman