UPDATE: Goldman Sachs Initiates Coverage on Benefitfocus on Sustainable Growth Outlook

In a report published Monday, Goldman Sachs analyst Greg Dunham initiated coverage on Benefitfocus (NASDAQ: BNFT) with a Buy rating and $50.00 price target.

In the report, Goldman Sachs noted, “We initiate coverage of Benefitfocus and are adding shares to the Americas Buy list as we see 19% upside over the next 12 months. The Affordable Care Act is creating awareness and causing employers and insurers to invest in online benefits administration applications that can improve self-service, lower costs, and comply with regulations. The SaaS business leverages a highly differentiated data exchange network built over 13 years. We see sustainable, durable growth as industry pressures shift the burden to employees and consumers (from employers), who increasingly shop, enroll, manage, and exchange benefits information with a vast array of parties.”

Benefitfocus closed on Friday at $41.86.