UPDATE: Jefferies Downgrades HMS Holdings to Hold: Valuation Reflect Improved Growth Visibility

Jefferies reduced its rating on HMS Holdings HMSY from Buy to Hold, but raised its price target from $29 to $32. Jefferies commented, "The SCOTUS decision to uphold ACA solidifies an accelerating growth outlook in '14-'15, but growth-related uncertainties remain. Medicaid RAC implementations and vendor selection processes should resume, but see likely to be choppy. The upcoming election, Medicaid spending growth, and state participation in expansion are wild-cards. The 40% move since our upgrade captured the opportunity, in our opinion." HMS Holdings closed at $34.27 on Tuesday.