UPDATE: Deutsche Bank Initiates Coverage on Benefitfocus with Buy Rating, $50 PT on Positive Long-Term Outlook

In a report published Monday, Deutsche Bank analyst Nandan Amladi initiated coverage on Benefitfocus BNFT with a Buy rating and $50.00 price target. In the report, Deutsche Bank noted, “Benefitfocus offers a cloud-based benefits management platform that enables their employer and insurance carrier customers to shop, enroll, manage and exchange benefits information. They address a $5bn market opportunity today, estimated to grow to $15bn in 2020 from the changing benefits enrollment landscape. With 348 employer customers (of a potential 18,000) and 37 carrier customers (of 315), the company is seeing a mix-shift towards the faster-growing employer business (two-year CAGR of 59%), but we conservatively model 25% total revenue growth near-term, and see long-term margin leverage from the growing share of subscription revenue. Initiate with Buy and $50 PT.” Benefitfocus closed on Friday at $41.86.