Equities research analysts at Stifel Nicolaus started coverage on shares of Healthcare Services (NASDAQ: HCSG) in a research note issued to investors on Tuesday. The firm set a “hold” rating on the stock.
The analysts wrote, “We believe the company will continue to grow its dominant share in the underpenetrated nursing home outsourcing sector. We would prefer an entry point for the shares at $18.75, all else being equal. We expect two drivers to sustain HCSG’s growth: its ability to deliver cost savings to its customers, and nursing home administrators’ desire to focus on clinical services. We expect solid revenue growth, particularly in HCSG’s smaller dietary business where higher revenues should generate margin expansion as the company leverages an underutilized management infrastructure.”
Separately, analysts at Benchmark Co. initiated coverage on shares of Healthcare Services in a research note to investors on Tuesday, March 13rd. They set a “buy” rating and a $23.50 price target on the stock.
Healthcare Services traded down 0.67% on Tuesday, hitting $19.32. Healthcare Services has a 1-year low of $12.16 and a 1-year high of $22.08. The company has a market cap of $1.297 billion and a price-to-earnings ratio of 34.12.
Healthcare Services last released its earnings data on Tuesday, April 10th. The company reported $0.13 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.15 by $0.02. The company’s revenue for the quarter was up 25.1% on a year-over-year basis. On average, analysts predict that Healthcare Services will post $0.18 earnings per share next quarter.
Healthcare Services Group, Inc. provides housekeeping, laundry, linen, facility maintenance and dietary services to the healthcare industry, including nursing homes, retirement complexes, rehabilitation centers and hospitals located throughout the United States.