Needham & Company Transfers Coverage on WageWorks (WAGE) wtih a Buy

Needham & Company transvers coverage on WageWorks (NYSE: WAGE) with a Buy rating and a price target of $65.00.

Analyst Mayank Tandon said, "We are transitioning coverage of WageWorks (WAGE) with a BUY rating and $65 price target. WAGE is the leading provider of on-demand tax-advantaged benefit programs to employers and should continue to benefit from secular trends in the healthcare industry and recent regulatory changes such as the FSA carry-over provision and new ordinances in certain large metropolitan locations requiring that pre-tax commuter benefits be offered to employees. We believe WAGE can grow revenue 20-25% through organic means and acquisitions, and sustain EBITDA margin expansion. We see the potential for a strong Open Enrollment season, and contributions from portfolio purchases and cross-selling efforts leading to upside to results and driving strong stock performance over the next 6-12 months."

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 $59.52 yesterday.

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