Leerink Partners Remains Bullish on WageWorks (WAGE) After Meeting with Management

Leerink Partners reiterated an Outperform rating and $57.00 price target on WageWorks (NYSE: WAGE) after meeting with management. Despite concerns from many investors about account fee declines, management described account pricing for its HSA and FSA accounts as steady and expects that trend to continue.

Analyst Steven Wardell commented, "Following a meeting with WageWorks Management we are more confident in our above-consensus estimates and $57 PT. Strong secular growth trends supporting the adoption of Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), and commuter accounts appear intact. The account pricing environment looks benign despite market concerns to the contrary. And WAGE's new custodial partnership with BNY Mellon looks to benefit the company in several ways. We like WAGE's positioning as a one-stop shop for consumer directed benefits accounts, believe the growth is stable and secular, and reiterate our OP rating."

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

Shares of WageWorks closed at $51.20 yesterday.

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