Lake Street on Barrett Business Svcs.

In a research note released Wednesday, Lake Street analyst Matt Blazei initatied coverage on Barrett Business Svcs.

with a Buy rating and a price target of 75.0. “Barrett Business Services has strong secular tailwinds, large ‘unit' growth potential, solid ‘same client' growth, margin expansion opportunities, and an attractive valuation.” Following a growth period for three years, Barrett increased its clients by a whopping 50 percent while increasing revenues. Ina addition, the vetting process is almost complete, which will create capacity for higher margins. As for growth, the company currently has 52 branches in 11 states, and over 80 percent of revenues being generated in just California and Oregon. This just shows how much growth is possible. Shares of the company are up five percent year-to-date and are down 45 percent year-to-date