Needham & Company Encouraged by WageWorks (WAGE) After 1Q15

Needham & Company maintained a Buy rating for WageWorks, Inc. (NYSE: WAGE) and lowered the target price to $65 (from $71) after solid results in the first quarter. WAGE reported organic revenue growth of 10.2% YoY, which led to an out-performance on EBITDA and EPS. Management will maintain guidance and continue to call for 10-12% organic growth.

Needham analyst Mayank Tandon commented, "We were encouraged to hear that the 2015 selling season is off to a strong start, with pipelines up from a year ago, and see potential for upside to estimates as the robust pipeline converts. We are fine tuning our FY15 estimates and tweaking our FY16forecasts higher. We are maintaining our BUY rating but trimming our target to $65."

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 $50.66 yesterday.

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