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Industrial Alliance analyst Steve Li says Nightingale Informatix is a BUY

Nightingale Informatix CEO Sam Chebib. Industrial Alliance Technology and Special Situations Analyst analyst Steve Li says the company is an emerging player that could make a dent in the North American EMR market.After years of speculation that it might, the Electronic Medical Records space finally seems to be gaining an irreversible foothold.

According to Maryland-based market research firm Kalorama information, the global EMR market reached US$17.9B in 2011. Kalorama expects that number to grow to $20.9B in 2012 and eventually $35.4B in 2016, representing a 5-year CAGR of 14.6%.

Industrial Alliance Technology and Special Situations Analyst analyst Steve Li says Canada has an emerging player that could make a dent in the North American EMR market.

Li says Nightingale Informatix (TSXV:NGH) is positioned to benefit not only from a government spending environment, but has developed a next-generation platform called neXia, a self-serve model with a more intuitive interface he believes will improve the adoption rate from SMB clients while reducing its cost of acquisition of subscribers. In a research update to clients today, Li reiterated his Strong Buy rating and twelve-month target of $.75 cents on Nightingale Informatix.

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Formed in 2002, Nightingale has become one of the fastest growing health care IT service and software and electronic medical records companies in North America. At the end of Q1/13, the company had more than 12,500 practitioners in its customer base, up more than 5000 from a year prior. Li says the adoption rate of EMR is quickly trending upwards, but at a penetration rate of 37% in Canada and 46% in the United States, Nightingale still has a lot of runway for growth.

Li believes Nightingale’s revenue will grow from the $18.1-million topline it posted in 2012 to more than $26-million in 2014.

Shares of Nightingale Informatix closed today even at $.25 cents.

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About The Author /

Nick Waddell
Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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