Duncan Williams Downgrades Healthcare Services Group (HCSG) to Hold; Valuation Call

Duncan Williams downgraded Healthcare Services Group (NASDAQ: HCSG) to Hold.

Duncan analyst says, "Our downgrade is purely based on valuation as HCSG is trading at 26 times our 2012 EPS estimate of $0.68. This valuation represents a premium to our current 2012 revenue growth estimate of 10% and our 2012 earnings growth estimate of 17%. We continue to believe that HCSG is a core holding for investors that want to participate in the outsourcing trend among healthcare providers."

"We are raising our 2011 revenue estimate to $865 million from $858 million. We are maintaining our 2011 EPS estimate of $0.58."

For more ratings news on Healthcare Services Group click here and for the rating history of Healthcare Services Group click here.

Shares of Healthcare Services Group closed at $17.76 yesterday.

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