Ahead of the Bell: Maximus
NEW YORK (AP) — A Citi Investment Research analyst started Maximus with a "Buy" rating on Tuesday, saying the company has the potential to more than double its earnings over the next three years.
Analyst James Naklicki said in a client note that Maximus Inc., which sells health consulting services to state and federal governments, will continue to benefit from states moving fee for service Medicaid programs over to managed care.
The analyst also says that health reform provides incremental growth opportunities from Medicaid expansion and health exchanges.
Maximus earned $76.1 million in its latest year while adjusted earnings from continuing operations came to $2.36 per share. Naklicki said that the stock has an appealing price and provided a $75 price target.
Maximus shares closed at $63.09 on Monday and hit an all-time high of $64.01 last week.