In a report released today, Vincent Colicchio from Barrington maintained a Buy rating on Barrett Business Services (BBSI – Research Report), with a price target of $45.00.
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Vincent Colicchio has given his Buy rating due to a combination of factors that highlight Barrett Business Services’ strong market position and growth potential. The company is targeting the expanding professional employer organization (PEO) market in the U.S., which has shown a significant growth rate. This positions Barrett Business Services to capitalize on a large and underpenetrated market, providing a solid foundation for future growth.
Additionally, the company’s growth strategy involves expanding in existing markets by enhancing sales teams and entering new geographies through an asset-light model. This approach allows for efficient scaling without heavy initial investments. Barrett Business Services also benefits from competitive advantages such as a local presence, effective referral networks, and limited insurance risks, setting it apart from competitors. The company’s positive business outlook, with projected growth in gross billings and worksite employees, further supports the Buy rating. The target price of $45 reflects confidence in the company’s ability to achieve its financial goals.
Colicchio covers the Technology sector, focusing on stocks such as Information Services Group, Asure, and Climb Global Solutions. According to TipRanks, Colicchio has an average return of 10.6% and a 55.93% success rate on recommended stocks.