Oppenheimer Sees 30% Upside In MedAssets (MDAS)

Oppenheimer & Co. has an Outperform rating and $27 price target on MedAssets, Inc. MDAS. In the research note, Oppenheimer writes, "On 9/27, the GAO published its report on Group Purchasing Organizations (GPOs). As we anticipated, the study was benign and did not mention any items that raised concerns among investors earlier. The report mostly focused on current industry trends and progress toward improving business practices. As expected, the report did not make any recommendations that would negatively impact GPOs. There had been concerns that the GAO report was going to recommend a GPO tax and/or eliminate the "safe harbor" exception for GPOs to collect admin fees from device manufacturers. Based on our communications with MDAS, we previously thought these concerns were overblown. We believe the release of this study should finally ease some of the concerns on MDAS." Shares of MedAssets gained 6 cents yesterday to close at $20.20, a gain of 0.3%.