After Guggenheim and Wedbush gave Benefitfocus (NASDAQ: BNFT) a Buy rating last month, the company received another Buy, this time from Cantor Fitzgerald. Analyst Steven Halper initiated coverage with a Buy rating on Benefitfocus today and set a price target of $60. The company’s shares opened today at $47.41.
Halper wrote:
“. We initiate coverage of Overweight rating and a 12-month price target of $60. BNFT is a provider of comprehensive cloud-based solutions for healthcare benefits administration. In 2018, the large employer customer segment accounted for 66% of revenue with a gross margin of 44%. The company also offers its solutions to insurance carriers, which generate higher gross margins (60%). BNFT’s revenue is recurring in nature, which should drive margin expansion over time. Furthermore, the company is transforming its sales model to accommodate all members of the health benefits ecosystem. We believe partnering with brokers (instead of competing for commissions) creates a more-compelling growth model.”
According to TipRanks.com, Halper is a 5-star analyst with an average return of 15.9% and a 57.9% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Benefitfocus with a $58 average price target, which is a 22.3% upside from current levels. In a report issued on March 28, Piper Jaffray also maintained a Buy rating on the stock with a $59 price target.
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The company has a one-year high of $60.66 and a one-year low of $22.88. Currently, Benefitfocus has an average volume of 561.5K.
Based on the recent corporate insider activity of 21 insiders, corporate insider sentiment is negative on the stock.
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Benefitfocus, Inc. engages in the provision of cloud-based benefits management platform for consumers, employers, insurance carriers, and brokers. It operates through the Employer and Carrier business segments.
