UPDATE: Compass Point Reiterates On Performant Financial As 2Q Healthcare Activity Is Holding Up

In a report published Tuesday, Compass Point analyst Michael Tarkan reiterated a Buy rating on Performant Financial (NASDAQ: PFMT), and raised the price target from $11.00 t $12.00.

In the report, Compass Point noted, “We reiterate our Buy rating on PFMT shares and are raising our price target to $12, from $11, after CMS released June-quarter correction results of its Recovery Audit Program which demonstrated steady performance from PFMT. This data typically serves as a good leading indicator for the company's quarterly healthcare revenue to be reported in conjunction with earnings in early August.

"While we continue to await resolution of the RAC contract awards, we continue to view the company's longer-term outlook as bright and expect increasing diversification of the revenue base, combined with new contract wins and steady student lending production, to drive the stock higher.”

Performant Financial closed on Monday at $10.49.