UPDATE: Bank of America Raises EPS and PO as HMS Holdings Acquires HDI

Bank of America has adjusted EPS for HMS Holding Corp as the company acquires HDI, a leading Medicare PI asset for $400 million. According to Bank of America, “The deal adds $85 million to 2012 revenues and is significantly accretive to adjusted EPS. HDI is compelling strategically, as it boosts HMSY's growth profile, enhances HMSY's program integrity capabilities and diversifies HMSY's business into Medicare. We are increasing 2012-2014 adjusted EPS estimates to $1.00 (from $0.84), $1.26 ($1.05), and $1.66 ($1.31) and view accretion targets as conservative. We are raising our P.O. to $35 (from $29).” HMSY trades closed at $28.73 per share on Monday.
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