Oppenheimer Outperform on MedAssets

Oppenheimer & Co. is out with a research report on MedAssets, Inc. MDAS and it has an Outperform rating and a $20 price target on shares. In a note to clients, Oppenheimer & Co. writes, "For the third quarter in a row, MedAssets beat consensus. However, the company lowered the midpoint of its revenue guidance, also for the third time. While the RCM business continues to disappoint, SCM continues to outperform expectations, even without the early recognition of TPC performance fees. The early achievement of savings guarantees considerably lowers the EPS ramp in 4Q, which should settle some of the market's concerns. At 11x and 9x our 2011 and 2012 EPS estimates, MDAS shares trade at a significant discount to the group and its historical multiple range. We continue to believe that if the company simply achieves its guidance, the valuation gap will narrow. We maintain our $20 PT and Outperform rating." Shares of MDAS closed at $10.36 yesterday.