UPDATE: Goldman Sachs Initiates West Corporation with Buy Following Platform Services Transition

In a report published Wednesday, Goldman Sachs analyst Paul Thomas initiated coverage on West Corporation

with a Buy rating and $28.00 price target. In the report, Thomas noted, “WSTC is a technology-driven, communication services company focused on delivering solutions to Fortune 1000 businesses. We believe West is well positioned to accelerate its organic growth after transitioning its business toward platform-based (automated) services and away from agent-based services (call centers). The transition has improved free cash flow performance and expanded capital allocation potential creating an attractive entry point, in our view. Our price target would equate to 10.7X our CY13 pro forma adjusted EPS estimate of $2.62.” West Corporation closed on Tuesday at $21.00.