UPDATE: ISI Group Initiates MedAssets with Overweight, $15.50 PT on Improvements Post Leadership Change

ISI Group initiated MedAssets

with a rating of Overweight and a price target of $15.50. ISI Group noted, "We are initiating coverage on shares of MedAssets with an Overweight rating and a price target of $15.50, which on a forward basis equates to ~10x EV/EBITDA and ~14x operating EPS. Our thesis for MDAS is based on the improved operating performance following leadership changes in the RCM segment, the steady growth of the GPO business (which will be supported by further deleveraging post Broadlane), and the continuation of a steady recurring revenue stream from a large and diverse customer base." MedAssets closed at $13.52 on Wednesday.