Jefferies Analyst Raises Price Target for Healthcare Services Group, Inc. (HCSG)

Jefferies analyst, Sean Dodge, reiterated a Hold rating for Healthcare Services Group, Inc. (NASDAQ:HCSG) following the company’s 2Q earnings report.

The company reported $70 million in new business back in 4Q15 and this new business was expected to be implemented in 1Q16. The analyst explains that this means, “2Q16 revenue would be up sequentially just on the full run-rate of revenue alone. However, implementation of 1/3rd of facilities took 30-60 days longer than anticipated due to some client-driven delays.”

Though 2Q revenue was pressured by client-driven implementation delays, as of June, the company’s management has reported that all new business was back on track.

The analyst issues a price target of $41.00 for HCSG.

According to TipRanks, Sean Dodge is ranked #1,418 of 4,055 analysts. he sees anĀ average return of 4.6% and a success rate of 70%.

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