Piper Jaffray Raises Price Target on TriNet Group (TNET) to $21 Following 2Q Beat

Piper Jaffray reiterated a Neutral rating on TriNet Group (NYSE: TNET), and raised the price target to $21.00 (from $18.00), following the company's 2Q earnings report. Net service revenue of $149.2M increased 22.3% y/y, above the consensus of 21.4%. EPS of $0.27 also beat the Street's $0.25 estimate.

Analyst George Tong commented, "TriNet's 2Q results reflect early indications that its insurance claims expenses are stabilizing, key to unlocking long-term valuation upside in the shares. Notably, pricing increases to offset higher claims costs are not meaningfully impacting worksite employee growth trends at the company. We believe TNET's market opportunity and growth outlook in the PEO space are attractive given its differentiated verticalized offerings, but are sidelined on the shares pending further increased visibility around claims performance."

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

Shares of TriNet Group closed at $21.12 yesterday.

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