Veradigm price target lowered to $17 from $24 at SVB Securities

SVB Securities lowered the firm’s price target on Veradigm to $17 from $24 and keeps an Outperform rating on the shares. The firm notes shares were under pressure on a press release acknowledging a failure in internal controls around revenue recognition for the past six quarters. In conjunction with the announcement, the company cut its full year 2023 guidance by about $15M in revenues and 10c on EPS, reflecting similar growth rates but on a lower baseline for 2022. SVB expects a meaningful pullback in shares as this introduces a sharp counterpoint to Veradigm’s "steady and reliable earnings/FCF" investment thesis. However, the firm leaves its forward outlook unchanged and sees the re-based level presenting a potentially attractive entry point after pullback.