UPDATE: Jeffries Initiates MedAssets at Buy on Attractive Pricing

In a report published on Tuesday, Jefferies analyst Sean Dodge initiated coverage on MedAssets MDAS with a Buy rating and $23 price target on the company.

In the report, Jeffries commented, "Attractively Priced Play on Healthcare Reform. Demand for MedAssets capabilities will grow as healthcare reform progresses and hospitals struggle with: (1) increasing reimbursement pressures; (2) the transition from fee-for-service to fee-for-value-based reimbursement models; (3) growing patient self-pay A/R mixes; (4) the migration to ICD-10; and (5) decentralized and inefficient procurement practices. Notably, the stock has one of the cheapest valuations in its peer group in terms of both adjusted P/E and FCF (yield)."

MedAssets closed on Monday at $19.25.