Jefferies Cuts Price Target on HMS Holdings Corp. (HMSY) to $19 Following 3Q Report

November 10, 2016 10:30 AM EST
Get Alerts HMSY Hot Sheet
Price: $18.17 +2.31%

Rating Summary:
    7 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 19 | New: 13
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Jefferies maintained a Hold rating on HMS Holdings Corp. (NASDAQ: HMSY), and cut the price target to $19.00 (from $23.00), following the company's 3Q earnings report. 3Q revenue increased $4M sequentially but missed estimates by $2.2M. Growth was ~14% YoY, compared to estimates of ~12.5% organically. Part of the shortfall related to delays in four implementations that pushed $2M of revenue into 4Q. Management's retained an 18-20% growth target.

Analyst David Windley commented, "HMSY's Commercial plan contract traction was less evident in 3Q revenue. Low taxes drove all the 3Q EPS upside plus a penny. Restoration of some RAC revenue offset by lower Commercial revenue keep our consolidated estimates fairly constant for '16 and '17. The threat to Medicaid Expansion is a new risk. We are lowering our PT to $19 on Medicaid uncertainty and slower Commercial growth."

For an analyst ratings summary and ratings history on HMS Holdings click here. For more ratings news on HMS Holdings click here.

Shares of HMS Holdings closed at $16.80 yesterday.

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