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UPDATE: Citigroup Reiterates Buy Rating, Raises PT on Maximus After 1Q13 Earnings Analysis

Related MMS
Earnings Scheduled For November 12, 2015
Stocks Hitting 52-Week Highs

In a report published Friday, Citigroup reiterated its Buy rating on Maximus (NYSE: MMS), and raised its price target from $75.00 to $85.00.

Citigroup noted, “The biggest catalyst for upside is the FFE eligibility support contract. Maximus bid on the contract, but it's unclear if they bid as prime. We estimate the contract could generate revenue of $75-$235 million in year one, depending on volumes, with margins of 5-8%. We expect awards in late March or early April. The FFE Appeals contract is also out for bid. A vendor can't win both eligibility support and appeals work on the exchanges. However, we view the FFE Appeals RFP as a good alternative if MMS doesn't win FFE eligibility support. The biggest risk to Maximus is if they don't win either contact. Eligibility support and Medicare and state appeals are the company's specialty. However, there will be tough competition from other government vendors.”

Maximus closed on Thursday at $71.35.

Latest Ratings for MMS

Nov 2015JefferiesMaintainsBuy
Sep 2015Canaccord GenuityInitiates Coverage onHold
May 2015JefferiesMaintainsBuy

View More Analyst Ratings for MMS
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Posted-In: CitigroupAnalyst Color Price Target Analyst Ratings


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