Jefferies Starts Coverage of Maximus Inc. With a “Buy” Rating (MMS)

Analysts at Jefferies initiated coverage on business process services provider Maximus Inc. (MMS) late on Thursday, giving the stock a bullish rating because it has several competitive advantages and should benefit from the Affordable Care Act (Obamacare).

The analysts rate MMS as “Buy” and see shares reaching $47. This price target suggests a 20% upside to the stock’s Thursday closing price of $39.14.

“MMS is a leading government outsourced contractor that produces consistently strong results,” Jefferies analyst David Styblo commented. “The company has several competitive advantages and is highly focused on health and human service projects. This positions MMS to enjoy multi-year growth from the ACA and other opportunities with limited risk. The company’s predictable business model, solid balance sheet, and EPS visibility into FY2014 also support a Buy and $47 PT.”

Maximus shares were inactive during pre-market trading on Friday. The stock is up 23.83% year-to-date.