Goldman Sachs Reiterates Buy Rating, $16 PT on Performant Financial Corp.
In a report published Monday, Goldman Sachs Group reiterated its Buy rating and $16.00 price target on Performant Financial Corp. (NASDAQ: PFMT).
Goldman Sachs noted, “On Friday September 28 the Department of Education (DoEd) released its latest National Default rate data covering the 2-year rates from FY2010 and the 3-year rate from FY2009. Consistent with our previous data and analysis on PFMT's Student Lending segment (63% of CY12E revenues) we focus on the 2-year default rate which finished at 9.1%, up from 8.8% in the previous FY2009 report. For perspective, the latest default rate results compare to an average default rate of c.5% from FY2001-2006. While there are no changes to our price target or estimates we view the latest default rate data release as a positive long-term driver for Buy rated PFMT given its loan recovery work.”
Performant Financial Corp. closed on Friday at $10.73.
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