UPDATE: Jefferies Initiates Coverage on Benefitfocus on Multiple Positive Factors

In a report published Monday, Jefferies analyst Ross MacMillan initiated coverage on Benefitfocus (NASDAQ: BNFT) with a Buy rating and $50.00 price target.

In the report, Jefferies noted, “We expect Benefitfocus to experience accelerating growth and capture value from the adoption of benefits enrollment software solutions as we move from a defined benefit to defined contribution world. We think the TAM is significant, penetration of benefits enrollment is low, healthcare reform is a tailwind, and business fundamentals appear attractive. Jefferies was an underwriter of Benefitfocus' Sept. 18 IPO.”

Benefitfocus closed on Friday at $41.86.