The Board of Directors of Missouri-based healthcare information technology solutions provider Cerner Corp. (CERN) has appointed David Feinberg as the CEO and President of the company, with effect from October 1. He will also join the company’s Board.
Cerner provides an integrated financial and clinical system that helps healthcare firms manage everyday revenue functions.
Feinberg succeeds Brent Shafer, who stepped down earlier. He joins Cerner from Google (GOOGL) where he served as the Vice-President of Google Health.
The current President of Cerner, Donald Trigg, will also leave. Furthermore, the Board plans to separate the roles of CEO and Chairman. It has named William Zollars as the Independent Chairman, starting October 1. (See Cerner stock chart on TipRanks)
Zollars said, “We are fortunate to have someone with Dr. Feinberg’s skills, vision and operational expertise to lead Cerner at such a pivotal time in our evolution. We are thrilled to welcome him to the Cerner family and look forward to benefiting from his insights and leadership as we continue evolving and executing our strategies.”
Feinberg said, “I look forward to expanding opportunities for Cerner clients and associates while affecting real change in healthcare and enhancing value for our shareholders.”
On August 2, Canaccord Genuity analyst Richard Close maintained a Buy rating on the stock and raised the price target to $90 from $89 (upside potential of 13%). The analyst said, “The company has been refining and resizing its business over the past couple of years and its efforts are beginning to take hold.”
Overall, the stock has a Strong Buy consensus rating based on 6 Buys and 2 Holds. The average Cerner price target of $86.88 implies upside potential of 9.1%. The company’s shares have gained 12.3% over the past year.
According to TipRanks’ Smart Score rating system, Cerner scores a “Perfect 10,” suggesting that the stock is likely to outperform market averages.
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