UPDATE: Bank of America Initiates Coverage on The Advisory Board Company on Rare Healthcare Growth Story

In a report published Friday, Bank of America analyst Robert M. Willoughby initiated coverage on

with a Buy rating and $67.00 price target. In the report, Bank of America noted, “Medicare/Medicaid entitlement cuts, changing payment models, and health care reform uncertainties are contributing to an increasingly complex health care environment, but these industry dynamics are a boon for ABCO, which helps providers execute operationally and strategically. It plans to grow by cross-selling new and existing solutions within its existing membership base, attracting new members, building and/or acquiring new software capabilities, and realizing greater economies of scale on a primarily fixed cost base. We forecast visible, long-term annual EPS growth of 15%, compelling relative to most of the other names in our coverage universe, with low invested capital requirements.” The Advisory Board Company closed on Thursday at $58.15.