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Eclipsys Corp. (ECLP)

Jefferies & Co. upgrades to hold from underperform; raises price target

Jefferies & Co. analyst Richard Close raised his rating on medical software company Eclipsys Corp. on Nov. 23, citing a better opinion on the company's prospects after a meeting with management.

The Atlanta-based company makes software for electronic medical records and medical operations, such as billing and cost accounting. The company reported a $3.9 million profit during the third quarter, following two quarters of losses.

Close also hiked his price target to $20 from $13.

"Management provided greater insight into leadership's strategy to enunciate a clear client message, improve product development and implementation operations, and grow new client opportunities while penetrating existing base," he said, in a note to investors. "While early in turnaround process (again) we are encouraged by the direction."

Close said he met with CEO Philip Pead and Chief Financial Officer Chris Perkins. The meeting provided him with "encouragement" that the company can take advantage of federal stimulus funds. Meanwhile, Close said it is the company's technology that is positioning it to take advantage of federal funding to implement electronic records and processes in the health care industry.

THQ Inc. (THQI)

Wedbush upgrades to neutral from outperform; lower price target

Wedbush analyst Michael Pachter said on Nov. 23 that he is cutting his $7 target on shares of interactive entertainment software firm THQ to $6, but upgrading the stock as he finds it more attractive at current levels. Pachter said the company's recent financial performance has been volatile (second-quarter earnings per share and revenue were above analyst forecasts, but the company did not raise forward guidance).

The analyst noted that THQ has been pressured by persistent industry sales drops, a cautious retailer environment, and weak consumer spending. But Pachter said a solid fist half of fiscal 2010 and a recent issue of $100 million in convertible notes have addressed bankruptcy concerns.

Pachter thinks the company's prospects have much improved. He sees fiscal 2010 (ending March) EPS of 25 cents.

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