UPDATE: Jefferies & Company Upgrades HMS Holdings to Buy, Raises PT

In a report published Friday, Jefferies & Company upgraded its rating on HMS Holdings Corp.

from Hold to Buy, and raised its price target from $21.50 to $29.00. Jefferies noted, “We believe management has guided '13 with adequate conservatism, after misses in 2012. We are more optimistic on the positive impact of Medicaid expansion in 2014/15 and the high likelihood of Medicare RAC reprocurement. The remaining issue, a potentially soft 4Q, is being telegraphed and discounted in the stock. With HMSY down 40% from mid-'12 highs, investors should look to buy, with 4Q providing maybe a brief lower level.” HMS Holdings Corp. closed on Thursday at $22.61.