Barrington Research Initiates Coverage On Healthways, Cites Strong Macro Environment

Michael Petusky of Barrington Research on Thursday initiated coverage of Healthways, Inc. HWAY with an Outperform rating and $25 price target as the company stands to benefit from a strong macro environment.

“The estimated addressable market size for the population health management industry is estimated to be approximately $50 billion,” Petusky wrote. “Growth in the market is primarily being fueled by the aging of the population, the increased prevalence of chronic diseases, the impact of the Affordable Care Act, and the shifting of financial risk.”

Petusky adds that the positive environment will remain in place for the foreseeable future and that the company has established a reputation of being a “safe bet” with a proven track record.

The analyst adds that the company maintains a customer retention rate of 90 percent plus that only reinforces a bullish thesis.

Shares of Healthways recently traded at $18.70, up 2.6 percent.