ExamWorks (EXAM) Price Target Raised to $43 at Goldman Sachs; Analyst Maintained Neutral Rating

Goldman Sachs maintained a Neutral rating on ExamWorks Group (NYSE: EXAM) and raised its price target to $43.00 (from $38.00). The change follows meeting with management.

Analyst Matthew Borsch said, "In discussing the near and long-term outlook, management’s tone appears more confident, which seems justified given the strength of recent execution and the increasing scale, technology, and geographic competitive advantage across its 4 markets (US, UK, Australia, Canada). In the US, EXAM is more than 10x the size of the next largest rival but has a lot of runway for further growth at 10% market share with the rest of the industry highly-fragmented and generally inefficient. Meanwhile, earnings and cash flow fundamentals have become increasingly consistent over recent quarters as EXAM has grown and improved its operating platform."

"We increase our 12-month price target by $5 to $43 driven by our higher projected earnings coupled with a higher target multiple (14.2x from 13.0x), reflecting our stronger confidence in EXAM’s execution. While our revised price target implies at least 15% near-term stock upside, we maintain our Neutral rating given we see greater upside to valuations within selected other areas of our coverage universe such as HNT (NYSE: HNT) (Buy) and WCG (NYSE: WCG) (Buy) with 20%/35% upside, respectively," he added.

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

Shares of ExamWorks Group closed at $36.85 yesterday.

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