Oppenheimer Sees 35% Upside In MedAssets (MDAS)

Oppenheimer & Co. has a $25 price target and an Outperform rating on MedAssets, Inc. MDAS. In a note sent to clients Oppenheimer writes, "On 11/30, MDAS updated CY10 guidance for the Broadlane acquisition, which closed on 11/16, and provided a framework for CY11. MDAS now expects CY10 cash EPS of $0.81-0.86 vs. $0.85-0.90. More Importantly, MDAS expects CY11 revenue growth of 50-52% on a non-GAAP basis and cash EPS growth of 35-40% to $1.13-1.16. We believe this initial CY11 guidance is conservative given that it does not include any revenue synergies from the Broadlane acquisition. As such, we believe MDAS could deliver better than expected results, particularly in 2H11 as both Broadlane and recently announced Ascension contract kicks into full swing." Shares of MDAS gained 3 cents yesterday to close at $18.55.