UPDATE 1-RESEARCH ALERT-Piper Jaffary ups MedAssets to buy
(Adds details, background, share movement)
May 2 (Reuters) - Piper Jaffary upgraded MedAssets Inc (MDAS.O: Quote, Profile, Research, Stock Buzz), a provider of cost management services to healthcare companies, to "buy" from "neutral," citing valuation and the company's recent acquisition of Accuro Healthcare Solutions.
On Tuesday, MedAssets said it agreed to buy Accuro Healthcare for a total of $350 million, including $100 million of debt.
Piper also raised its price target on the stock to $18.50 from $17, and said the deal will help MedAssets' revenue and add to earnings.
"MedAssets's solutions, both on the spend management and revenue cycle management side, help hospitals improve cash flow," analyst Sean Wieland said in a research note.
Shares of the company were trading up almost 8 percent at $16.75 in morning trade on Nasdaq. (Reporting by Varsha Tickoo in Bangalore; Editing by Pratish Narayanan)
© Thomson Reuters 2008 All rights reserved
Help us advance this story. Provide relevant links or share your insights using our comment box. Please be considerate and help us by reporting any abuse you find. Reuters will delete comments that don't meet community standards.
Have a correction to this article? Email the editors
Sphere
Daring chimp
Dolly's damage