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Bank of America Reaffirms Buy on HMS Holdings Despite Negative Report

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Bank of America published a research report on HMS Holdings (NASDAQ: HMSY) reaffirming its Buy rating despite the company's weakness in shares.

In the report, Bank of America wrote, "HMSY shares are trading lower on a negative research report that outlines three main investment concerns: 1) the Medicaid coordination of benefits (COB) market is saturated; 2) Medicare recovery audit contract (RAC) revenue is threatened by high provider appeal rates; and 3) the Medicaid RAC revenue opportunity is exaggerated. We believe these concerns are overblown and/or inaccurate and address each below. We affirm our Buy rating on HMSY with a view that growth prospects are robust as it saves government and HMO customers money identifying fraud, waste and abuse in an increasingly complex health care system."

Bank of America maintained its price objective of $44 on HMS Holdings, which is currently trading down 4.62 percent from yesterday's $35.26 closing price.

Latest Ratings for HMSY

DateFirmActionFromTo
Jul 2015Bank of AmericaDowngradesBuyNeutral
Jun 2015OppenheimerInitiates Coverage onOutperform
Mar 2015BairdInitiates Coverage onOutperform

View More Analyst Ratings for HMSY
View the Latest Analyst Ratings

Posted-In: Bank of AmericaAnalyst Color Reiteration Analyst Ratings

 

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