UPDATE: Citigroup Initiates Maximus at Buy on Health Care Reform Opportunities
Citigroup initiated coverage on Maximus (NYSE: MMS) with a Buy rating and a $75 price target.
Citigroup said, "Over the next three years, we think Maximus can more than double earnings. The company will continue to benefit from states moving fee for service Medicaid programs over to managed care. Moreover, Health Reform creates incremental growth opportunities from the Medicaid expansion and health exchanges. We think earnings can grow to $4.20 per share in 2015, and estimate the benefit of health exchanges and capital deployment could add another $0.70 per share."
Maximus closed at $63.09 on Monday.
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