UPDATE: Morgan Keegan Lowers PT on HMS Holdings to $75 (HMSY)

Morgan Keegan is out with its report today on HMS Holdings HMSY, lowering its PT from $78 to $75. In a note to clients, Morgan Keegan writes, "Our 12 month PT of $75 on shares of HMS is based on the assumption that the company achieves a multiple of 34x our next twelve month estimate of $2.21 that excludes acquisition related intangible asset amortization and stock option expense. Assuming the S&P 500 appreciates 10% in the next 12 months, consensus estimates suggest it would be trading at a PEG ratio of 1.57x calendar 2011 estimates. We derived our 34x valuation for shares of HMSY by giving the company a PEG ratio that is in line with the S&P 500 on our estimated 21% EPS growth rate from 2011-14. Our prior PT was $78." Morgan Keegan maintains Market Perform on HMSY. Shares of HMSY closed Friday at $78.71.