Oppenheimer analyst Mohan Naidu maintained a Buy rating on Hms Holdings Corp (HMSY) today and set a price target of $41. The company’s shares opened today at $31.94.
Naidu noted:
“HMSY reported numbers well ahead of estimates on strong COB revenue growth at 15% offsetting some of the PI weakness in 1Q. Analytical revenues, including PI and TPM, grew 1.9% y/y, excluding reserve release in the prior-year quarter. We believe PI weakness is timing-related and expect to catch-up through 2019. We continue to be enthusiastic about the new product introduction and yield improvement opportunities through some of the machine learning and NLP efforts at the company, which can significantly change the speed and cost structure to drive leverage in the model. While the rhetoric around ACA and Medicare for All is likely to continue, we believe the results from the company will continue to outpace the negative headlines. We expect to fine-tune our estimates; maintain Outperform.”
According to TipRanks.com, Naidu is a 5-star analyst with an average return of 9.7% and a 54.1% success rate. Naidu covers the Services sector, focusing on stocks such as Tivity Health Inc, Evolent Health, and Premier Inc.
Hms Holdings Corp has an analyst consensus of Strong Buy, with a price target consensus of $37.
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Hms Holdings Corp’s market cap is currently $2.51B and has a P/E ratio of 46.69. The company has a Price to Book ratio of 3.51.
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HMS Holdings Corp. engages in the provision of cost containment solutions in the healthcare marketplace. It uses healthcare data technology, analytics, and related services to deliver coordination of benefits, payment, population risk intelligence, care management, and consumer engagement solutions to help payers reduce costs, and improve healthcare outcomes.
