There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on Tivity Health Inc (NASDAQ:TVTY) and Fleetcor Technologies (NYSE:FLT) with bullish sentiments.
Tivity Health Inc (TVTY)
In a report released yesterday, Steven Halper from Cantor Fitzgerald maintained a Buy rating on Tivity Health Inc, with a price target of $49. The company’s shares closed yesterday at $33.90.
Halper wrote:
“. We maintain our Overweight rating on TVTY shares but reduce our 12-month price target to $49 from $53. After the close on August 2, TVTY reported 2Q18 results, with revenue slightly below FactSet consensus, while adjusted EPS were in line with consensus. Visits rebounded from 1Q18 levels, which were negatively impacted by flu and weather. TVTY maintained its 2018 guidance and provided its initial thoughts on 2019 revenue. UnitedHealth Group (UNH – Overweight) will remove SilverSneakers in 11 additional states beginning in 2020. Despite the loss, management still expects revenue growth in the mid- to high- single-digit range. Management maintains that its investments to drive enrollment and utilization are starting to show returns for the company.”
According to TipRanks.com, Halper is a top 100 analyst with an average return of 20.6% and a 72.4% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Hms Holdings Corp, and Evolent Health.
Tivity Health Inc has an analyst consensus of Strong Buy, with a price target consensus of $48.
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Fleetcor Technologies (FLT)
In a report released yesterday, Glenn Greene from Oppenheimer reiterated a Buy rating on Fleetcor Technologies, with a price target of $247. The company’s shares closed yesterday at $221.57, close to its 52-week high of $225.92.
Greene commented:
“FleetCor reported solid upside 2Q18 results with organic revenue growth of 9% ($5M < our estimate). Encouragingly, fuel card growth accelerated to 5%, still reflects 300bps aggregate drag from previously disclosed IT conversion snafu and lost Chevron sales; and should improve further during 2H. in addition, each of the strategic non-fuel businesses, Lodging, grew 20%+ organically. FLT largely carried the upside 2Q EPS results toward its FY18 guide (i.e., raised mid- point $0.07 despite $0.15 of incremental macro headwinds); now $10.32-10.52. With shares trading at ~18.4x our FY19E, business mix and fuel card growth improving, and line-of-sight toward normalized low to mid-teens organic (perhaps 15-20% overall) EPS growth, shares appear highly attractive to us. Reiterate Outperform rating and $247 PT."
According to TipRanks.com, Greene is a top 25 analyst with an average return of 21.4% and a 82.6% success rate. Greene covers the Technology sector, focusing on stocks such as Jack Henry & Associates, Fidelity National Info, and Total System Services.
Fleetcor Technologies has an analyst consensus of Strong Buy, with a price target consensus of $246.67.
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