<div><p>NEW YORK (Reuters) - Shares of Cerner Corp <CERN.O> look a little pricey, but there may be upside yet because of "gaping holes" in healthcare information technology that are starting to get filled, Barron's reported on Sunday.</p><p>Cerner, a healthcare information technology company, trades in the mid-$50s, or about 22.8 times this year's consensus profit estimates of $2.41 a shares, Barron's said. The weekly financial newspaper, however, cited a Piper Jaffray analyst who revised his 12-month price target to $78.</p><p>The reason for the revision is the American Recovery and Reinvestment Act of 2009, which includes $36 billion of incentives to encourage more use of electronic medical records and penalizes healthcare providers who don't, Barron's said.</p><p>At many hospitals, which Barron's said are Cerner's big customers, information technology gaps remain, particularly for computerized clinical order entry and electronic medical records.</p><p>Cerner generates about 15 percent of its $1.7 billion of revenue from selling licensed software for electronic medical record and order entry systems, Barron's said, calling it a very profitable business.</p><p>Cerner was hurt by some capital spending cuts at hospitals, but the company said that the stimulus plan could spur business this year, Barron's reported.</p><p>Barron's also said investors might want to wait for a 5 percent or 10 percent sell-off before buying the stock. It also said Cerner should have a "clean bill of health" for the next several years.</p><p>(Reporting by Robert MacMillan; Editing by Jan Paschal)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=50503426&bid=informcom" /></div><div id="copyright"><div>

Copyright 2009  <a href="http://www.reuters.com/finance">Reuters US Online Report Business News</a></div></div>