Dougherty & Co. Raises Price Target on Healthways (HWAY), Now Is a Great Buying Opportunity
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Price: $23.70 --0%
Rating Summary:
8 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
8 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Dougherty & Co is maintaining its Buy rating on shares of Healthways (NASDAQ: HWAY) and is raising its price target by $1 to $20 following its Q2 results.
The company released its Q2 result with $169.6 million in revenue and EPS of $0.17, ahead of the firms estimates. Management also affirmed its previous guidance $0.90-$1.08, but noted that 2011 will be back-end loaded as a result of expenses related to launching several expansive new or more comprehensive engagements and related performance provisions in these contracts.
Shares fell on July 22 due to the rumor that Cigna (NYSE: CI) may in source a part of their business in which they currently outsource to HWAY. The firm believes that the pull allows for a great buying opportunity and states that even if the rumor is true shares are undervalued.
Dougherty & Co is reiterating its 2011 and 2012 EPS estimates of $0.90 and $1.16, but is lowering its revenue estimates from$681.1 million and $740.6 million to $679.9 million and $734.2 million.
An analyst at the firm reports, "We remain steadfast believers in HWAY and the programs the company has developed to control rapidly rising health care costs and to improve health quality. Four recent significant contract signings and continued strength in RFP activity are clear evidence the tone of business is improving."
For more ratings news on Healthways click here and for the rating history of Healthways click here.
Shares of Healthways closed at $15.17 yesterday.
The company released its Q2 result with $169.6 million in revenue and EPS of $0.17, ahead of the firms estimates. Management also affirmed its previous guidance $0.90-$1.08, but noted that 2011 will be back-end loaded as a result of expenses related to launching several expansive new or more comprehensive engagements and related performance provisions in these contracts.
Shares fell on July 22 due to the rumor that Cigna (NYSE: CI) may in source a part of their business in which they currently outsource to HWAY. The firm believes that the pull allows for a great buying opportunity and states that even if the rumor is true shares are undervalued.
Dougherty & Co is reiterating its 2011 and 2012 EPS estimates of $0.90 and $1.16, but is lowering its revenue estimates from$681.1 million and $740.6 million to $679.9 million and $734.2 million.
An analyst at the firm reports, "We remain steadfast believers in HWAY and the programs the company has developed to control rapidly rising health care costs and to improve health quality. Four recent significant contract signings and continued strength in RFP activity are clear evidence the tone of business is improving."
For more ratings news on Healthways click here and for the rating history of Healthways click here.
Shares of Healthways closed at $15.17 yesterday.
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