WageWorks' (WAGE) Decline Called Buying Opportunity at Leerink Partners

Leerink Partners maintained an Outperform rating on WageWorks (NYSE: WAGE) with a price target of $70. Shares declined after Towers Watson (NASDAQ: TW) announced that it has acquired Acclaris, a provider of software-as-a-service (SaaS)-based technology and services for consumer-driven health care and reimbursement accounts, including health savings accounts (HSAs), health reimbursement arrangements (HRAs) and other consumer directed accounts.

In the view of analyst Steven Wardell, WageWorks' deal with TW remains intact and the decline is a buying opportunity.

"We believe that the announcement that Towers Watson (TW) has acquired Health Savings Account (HSA) vendor Acclaris will have a minimal impact on WAGE's performance and valuation. After speaking with Management, we believe that WAGE's deal with TW remains intact, that the acquisition of Acclaris represents only a loss of exclusivity on the TW exchanges that was inevitable in the next couple of years anyway, and not a loss of the TW opportunity. WAGE remains a product leader that is attractively positioned across multiple growth sectors," said Wardell.

"Today's pull-in represents a buying opportunity in the name, in our view," added the analyst.

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 $48.83 yesterday.

You May Also Be Interested In

• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• MGIC Investment (MTG) Announces $750M Share Buyback, Declares $0.115 Dividend
• Sage Therapeutics (SAGE) PT Lowered to $18 at Truist Securities