UPDATE: Bank Of America Downgrades MedAssets
Bank of America downgraded MedAssets (NASDAQ: MDAS) to a Neutral rating upon valuation and assigned a $24 price objective.
Bank of America analyst Robert M. Willoughby said, "The company has benefited from higher demand for its group purchasing and revenue cycle services in the current health care environment, and stronger earnings, coupled with deleveraging in the wake of its Broadlane acquisition in 2010, has pushed ROIC higher at an accelerated clip."
Willoughby continued to cite that MDAS has been trading at an expected P/E multiple of 15.1x for 2015, which is why Willoughby views the stock as fairly valued relative to its historical average of 15.1x.
MedAssets closed Wednesday at $23.41.
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