Oppenheimer Sees Attractive Entry Point On MedAssets (MDAS)

Oppenheimer & Co. sees an attractive entry point in shares of MedAssets, Inc. MDAS after a slump in share price following earnings results. It has a Outperform rating and $27 price target. In the report Oppenheimer & Co. notes, "MDAS has been under pressure since reporting 2Q results 8/4, largely around two issues: 1) slowing contracted revenue growth, and 2) recent concerns over potential impact to spend management (SM) from upcoming GAO report on GPOs. As it relates to contracted revenue, key factor investors should keep in mind is that it is not the same as backlog, and as such, placing such importance on growth rate of this metric doesn't fairly address/credit conservative manner of how MDAS calculates contracted revenue in first place. We believe these concerns, as well as concerns over potential impact from GAO report, are overblown and see the recent weakness as an attractive entry point." Shares of MedAssets closed flat yesterday, at $20.98.