William Blair Initiates Cotiviti With Outperform Rating

Cotiviti Holdings Inc COTV is a leading provider of payment accuracy solutions to health insurers and retailers. William Blair analysts initiated coverage of the company with an Outperform rating, saying that Cotiviti has a large and growing TAM, which is currently estimated at ~$5.2b.

Cotiviti’s competitive position appears sustainable, since the company has long-standing customer relationships and “unique prospective and retrospective analytics,” the analysts said.

Moreover, Cotiviti has several avenues for growth, including an uptrend in HC spending, merger with iHealth, and upselling opportunity with existing clients.