MAXIMUS, Inc. (MMS) PT Raised to $110 at Stifel

Stifel analyst Bert Subin raised the price target on MAXIMUS, Inc. (NYSE: MMS) to $110.00 (from $105.00) while maintaining a Buy rating.

The analyst comments "Maximus reported $1.57 in adj-EPS for F2Q, which was well ahead of $1.30 consensus and our $1.27 estimate. Sales were also ahead at $1.35B vs. $1.29B with medical disability exams and Medicaid redetermination volumes the key drivers for both growth and earnings outfperformance, leading Maximus to outpace the street's and our already bullish expectations. Exceptional results across the board led management to raise guidance for the second time this year (adj-EPS +7.5% at the MP; sales +1.5pts; FCF +7.7%). Additionally, Maximus repurchased $20m in shares to start F3Q given their strong FCF expectations and net leverage position (1.7x). We continue to see adj-operating margins on track toward ~12% (from ~10.6% in FY24) in the medium-term. If management can bolster that margin expectation with mid-single-digit organic growth, we would expect to see higher earnings and multiple expansion."

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