Raymond James upgraded Maximus (MMS) to Outperform from Market Perform with a $90 price target While 2023 and the first 11 months of 2024 were the best periods for the government service sector in more than 20 years, a new administration, a “provocative group” of political appointee nominations, and President-elect Trump’s Department of Government Efficiency’s “have significantly dented investor psyche,” the trading multiples, and halted stock momentum over the last 45 days, the analyst tells investors in a research note. The firm believes the “dislocation in equities has created opportunities” across its government IT coverage. It made four rating changes heading into 2025. Maximus trades at a discount to peers and its historical multiples, but nearly 75% of its revenue is in mandatory spend areas that the company can aid in efficiency initiatives, contends Raymond James.
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Read More on MMS:
- Maximus announces $200M increase to share repurchase pact
- Maximus divests Australia and South Korea operations, expects $100M impact
- Maximus says it will continue to perform CCO contract
- CCO contract cancellation removes overhang for Maximus, says Raymond James
- MAXIMUS trading resumes
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
