Buy Accretive While On Weakness

JP Morgan has published a research report on Accretive Health (NYSE: AH) after the company reported revenue shortfalls in its 3Q.

In the report, JP Morgan writes "AH shares traded down 7.7% yesterday (vs. -0.4% for the S&P 500) after reporting 3Q EPS that was in line with consensus of $0.06, but revenue that was $14M below consensus of $172M. We believe the revenue miss sparked the selloff, and we view the decline as an overreaction to an otherwise good quarter."

JP Morgan maintains its Overweight rating but has lowered the price target from $27 to $22.

Accretive Health closed yesterday at $9.00.