UPDATE: Lake Street Initiates Coverage On Barrett Business Services

In a research note released Wednesday, Lake Street analyst Matt Blazei initiated coverage on Barrett Business Services (NASDAQ: BBSI) with a Buy rating and a $75.00 price target.

“Barrett Business Services has strong secular tailwinds, large ‘unit' growth potential, solid ‘same client' growth, margin expansion opportunities, and an attractive valuation.”

Following a growth period for three years, Barrett increased its clients by a whopping 50 percent while also increasing revenues. The vetting process is almost complete, which will create capacity for higher margins.

As for growth, the company currently has 52 branches in 11 states, with over 80 percent of revenues being generated in just California and Oregon.

Shares of the company are up 4.95 percent Wednesday.