Barrington Research Starts Providence Service (PRSC) at Outperform
Get Alerts PRSC Hot Sheet
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 13 | New: 17
Join SI Premium – FREE
Barrington Research initiated coverage on Providence Service (NASDAQ: PRSC) with a Outperform rating and a price target of $49.00.
Analyst Michael Petusky said, "We expect material expansion in EBITDA margin over the next couple of years. We have modeled EBITDA margin to improve approximately 150 basis points between full-year 2014 and full-year 2016. In addition to the strong top-line growth we are projecting, we also believe that a material improvement in human services segment margins and a lower G&A expense percentage will be key drivers in the projected EBITDA improvement."
"We arrive at our price target by attaching an 8x multiple to our 2015 EBITDA estimate and a 7.3x multiple to our 2016 EBITDA expectation. We assume average net debt of $400 million in 2015 and $375 million in 2016," he added.
For an analyst ratings summary and ratings history on Providence Service click here. For more ratings news on Providence Service click here.
Shares of Providence Service closed at $35.96 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Maxim Group Starts Amazon.com (AMZN) at Buy
- CIBC Upgrades Goeasy Ltd (GSY:CN) (EHMEF) to Outperformer
- Maxim Starts Beyond Inc. (BYON) at Buy
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, New CoverageSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!