Needham & Company Remains Bullish on WageWorks (WAGE) Following Investor Meetings

Needham & Company reiterated a Buy rating and $55.00 price target on WageWorks (NYSE: WAGE) after hosting the company for investor meetings. Needham believes that there could be an upside to consensus estimates. The new partnership with the Federal Government provides approximately 1.8 million eligible Federal employees with access to WAGE’s industry-leading proprietary platform. Needham also believes that the win could be incremental to growth in late FY16 and could contribute even more to growth in FY17 as the relationship scales.

Analyst Mayank Tandon commented, "We hosted WAGE for investor meetings this week in New York and Boston. We came away from the meetings confident in our investment thesis that the market opportunity for consumer-directed benefits remains large and underpenetrated, and that WAGE remains well positioned to capture a disproportionate share of the market opportunity as adoption of consumer-directed healthcare and commuter benefits continue to increase. With WAGE coming off a strong enterprise and SMB selling season and a successful open enrollment period, as well as the recent large win with the Federal Government, we believe there could be upside to our and consensus estimates. We maintain our BUY rating with a $55 target."

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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