UPDATE: Benchmark Downgrades Healthcare Services Group to Hold on Valuation

The Benchmark Company reduced its rating on Healthcare Services Group (NASDAQ: HCSG) from Buy to Hold with a reiterated $23.50 price target.

The Benchmark Company stated, "Our downgrade is based purely on valuation as HCSG hit our target price of $23.50. Our target price of $23.50 represents approximately 30 times our 2013 EPS estimate of $0.78. We continue to have a favorable view of the company; HCSG is an industry leader in the outsourcing services sector that includes housekeeping, laundry & linen and food services to the hospital and long- term care industries."

Healthcare Services Group closed at $23.81 on Monday.