Piper Jaffray Cuts Price Target on TriNet Group (TNET) to $22 Following 2Q EPS Miss

Piper Jaffray maintained a Neutral rating on TriNet Group (NYSE: TNET), and cut the price target to $22.00 (from $33.00), following 2Q15 results. EPS of $0.14 missed the Street's $0.27. Management lowered full-year revenue guidance by $25M.

Analyst George Tong commented, "Claims expense visibility remains diminished at TriNet, where 2Q results included a higher-than-expected frequency of large medical claims, contributing to a miss in net services revenue, EBITDA and EPS. While claims accrual expense was higher than expected, worksite employee growth re-accelerated with strong growth in sales reps. We remain on the sidelines until claims expense visibility improves, which will require 1-2 quarters of execution consistent with reset guidance. Reiterate Neutral and lowering price target from $33 to $22."

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

Shares of TriNet Group closed at $26.69 yesterday.

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