Citi Comments On MedAssets' Q4 Results

Citi Comments On MedAssets' Q4 Results In a report published by Citi, MedAssets MDAS reported its Q4 results and 2011 guidance shortfall. Citi said that it had the opportunity to host a dinner with MDAS management and the company participated in our annual Global Healthcare Conference. “Given the severity of the shortfall (shares off >25%), we take this opportunity to revisit what went wrong and our current thoughts on the shares. MDAS is trading at ~16x our 2011 EPS estimate of $0.98. We believe that MDAS is now a “show me” story for investors, where the company will need to demonstrate predictable earnings growth in order to see multiple expansion. Our price target of $17 is based on 17x our 2011E EPS estimate of $0.98. We maintain our Hold rating.” MedAssets closed yesterday at $15.04.