Skip to main content

Market Overview

WageWorks Shares Could Rise 16% Over Next Year

WageWorks Shares Could Rise 16% Over Next Year

Channel checks indicate strong growth for Wageworks Inc (NYSE: WAGE) over the next couple of years from multiple sources, Chardan Capital Markets’ Steven Wardell said in a report. He initiated coverage on the company with a Buy rating and a price target of $86.

WageWorks’ growth over the next two years would be driven by employers shifting healthcare costs onto employees and employees turning to the company’s products for tax advantages in paying for healthcare, Wardell mentioned. He added that there was 16 percent upside for the stock in the next 12 months.

Strong Demand Would Boost Growth

WageWorks, a leading provider of Consumer Directed Benefit (CDB) services to employers, has an addressable market of $6 billion. The company already has a market share of about 10 percent. The market is consolidating and WageWorks “is a proven consolidator in the sector, providing an inorganic-growth option for the company,” Wardell commented.

The analyst expects demand for CDBs to be robust in 2017, resulting in revenue growth of 32 percent for WageWorks. He added that the stock currently trades at a premium to its peers, but should be able to maintain its premium over time “because of the company's market leadership position and high 30 percent forward Adj. EBITDA margin.”

Latest Ratings for WAGE

Jul 2019Stifel NicolausDowngradesBuyHold
May 2019Wells FargoDowngradesOutperformMarket Perform
May 2019JMP SecuritiesMaintainsMarket OutperformMarket Outperform

View More Analyst Ratings for WAGE
View the Latest Analyst Ratings


Related Articles (WAGE)

View Comments and Join the Discussion!

Posted-In: Chardan Capital MarketsAnalyst Color Long Ideas Health Care Initiation Analyst Ratings Trading Ideas General Best of Benzinga

Latest Ratings

FIBKStephens & Co.Downgrades
LEAFCanaccord GenuityDowngrades8.5
AGMSidoti & Co.Downgrades115.0
KEXGabelli & Co.Downgrades
OCGNCantor FitzgeraldDowngrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at