Jul. 21--Two analysts say they like Cerner Corp., but they can't agree enough to like its current stock price.

Corey Tobin at William Blair & Co. and Glenn Garmont at ThinkEquity LLC each weighed in on Cerner's investment outlook in reports last week.

Both forecast revenue and earnings growth for the North Kansas City-based provider of clinical software for hospitals and doctors. Each noted the economic stimulus package as a significant boost to Cerner, as it will help finance and spur greater use of health care information technology.

Their estimates for Cerner's earnings this year are the same and vary only a bit for 2010.

Yet Garmont rates the stock a "source of funds," which is a polite way of saying sell, while Tobin initiated coverage with an "outperform," or buy, rating.

For the bear, Cerner's stock price already reflects all the good news ahead, "so there will be no 'shock value' if and when it actually occurs," he wrote.

Garmont also wondered openly whether Cerner, a leading provider to large hospitals, is as well positioned in the medium and smaller market, where, he wrote, much of the stimulus-driven technology adoption will come.

He thought, too, that business might slump after the stimulus package's push is over.

Garmont still likes the company but would want to buy at lower prices.

Tobin, a bull, estimates that Cerner shares sell at a discount to rivals' shares when compared with expected earnings.

He likes the push from the stimulus package but also sees international sales as a "key driver" of growth, increasing profit margins and a more predictable revenue mix.

Cerner shares closed Monday at $62.29, a drop of 50 cents, but up 62 percent from the start of the year.

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U.S. markets Stocks jumped again Monday after news that CIT had struck a deal that will keep the troubled commercial lender out of bankruptcy.

More upbeat earnings reports and a better-than-expected read on future economic activity also drove shares higher. A 100-point gain pushed the Dow Jones industrials back into the black for the year.

The Conference Board's index of leading economic indicators rose 0.7 percent in June, more than forecast.

The Dow rose 104.21, or 1.2 percent, to 8,848.15, its highest level since Jan. 6. The S&P 500 index rose 10.75, or 1.1 percent, to 951.13. The Nasdaq composite index rose 22.68, or 1.2 percent, to 1,909.29.

To reach Mark Davis, call 816-234-4372 or send e-mail to mdavis@kcstar.com.

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