UPDATE: Oppenheimer Downgrades HMS Holdings to Perform Medicare Contract Headwinds
Oppenheimer downgraded HMS Holdings (NASDAQ: HMSY) from Outperform to Perform.
Oppenheimer commented, "With the shares up nearly 40% since reporting disappointing 3Q12 results (S&P 500 +6% over the same period), we downgrade HMS to Perform from Outperform. Aside from the recent run-up in share price, we are also concerned about HMS's ability to meet the low-end of its own revenue guidance let alone consensus. Our concern stems from the ongoing protest that has thrown its Medicare COB contract in limbo. Guidance assumed the contract would start in February and contribute ~$50M."
HMS Holdings closed at $28.30 on Friday.
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