UPDATE: Wunderlich Securities Initiates Healthcare Services Group at Buy on Leading Market Position
In a report published Friday, Wunderlich Securities analyst James Terwilliger initiated coverage on Healthcare Services Group (NASDAQ: HCSG) with a Buy rating and $27.00 price target.
In the report, Wunderlich Securities noted, “We are initiating coverage of Healthcare Services Group, Inc. (HCSG) with a Buy rating and a twelve month price target of $27.00, or 30x our 2014 EPS estimate of $0.90. HCSG provides housekeeping, laundry, linen, facility maintenance, and food services to over 3,500 client facilities in 48 states and Canada. This is a large, multi-billion market with approximately 23,000 long-term care and post-acute care facilities in the U.S. and total expenditures estimated at $149 billion. HCSG has a strong balance sheet, an attractive dividend program, and excellent revenue visibility from a large customer base. We believe that HCSG is a core holding for healthcare investors as the company is one of the largest providers of housekeeping, laundry, and food services to the health care industry.”
Healthcare Services Group closed on Thursday at $24.08.
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