Gevity HR "sector perform," target price reduced

09/19/06 - RBC Capital Markets

NEW YORK, September 19 (newratings.com) - Analyst Cynthia Houlton of RBC Capital Markets reiterates her "sector perform" rating on Gevity HR Inc (GVHR). The target price has been reduced from $26 to $24.

In a research note published yesterday, the analyst mentions that the downward revision in the estimates reflects the unexpected rise in healthcare premiums and the delay in the middle market pipeline. The analyst expresses her concern regarding the timing of the middle markets contributing to WSE growth, given that visibility into this new segment remains restricted. The EPS estimates for 2006 and 2007 have been reduced from $1.40 to $1.30 and from $1.62 to $1.49, respectively.