UPDATE: Morgan Stanley Reiterates on Performant Financial Following CFO Meetings
In a report published Monday, Morgan Stanley analyst Suzanne E. Stein reiterated an Overweight rating on Performant Financial (NASDAQ: PFMT), but removed the $12.00 price target.
In the report, Morgan Stanley noted, “Despite delays in the renewal of the RAC contract, management remains confident it is in a strong position to win a second term. Region A, Performant's current region, will increase slightly in size and may not have the sub-contractor carve out. The new contract will break out Durable Medical Equipment (DME), which will be a separate national contract. DME was previously embedded in regional contracts but was not a focus for the RACs, due to poor economics. A single contractor is permitted to win two contracts - likely a single region plus the DME contract.
"While timing of the award remains uncertain, management believes it will occur by June, though it could be as early as April. In addition, management remains confident that restrictions on corrections for the two-midnight stay will be lifted but even if this is not the case, there are many other issues it can pursue. Management also seems confident in potential growth of the commercial opportunity.”
Performant Financial closed on Friday at $8.67.
Latest Ratings for PFMT
|Feb 2015||Compass Point||Downgrades||Buy||Neutral|
|Nov 2014||Macquarie||Initiates Coverage on||Neutral|
|Nov 2014||Morgan Stanley||Downgrades||Overweight||Equal-weight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.