CCO contract cancellation removes overhang for Maximus, says Raymond James

Raymond James reiterated a Market Perform rating on Maximus (MMS), noting that the solicitation for Maximus’ Contact Center Operations contract has been canceled, suggesting that the risk of a re-complete of the 1-800 Medicare contract has been removed for the foreseeable future. The firm said the move will be viewed positively as it removes a key overhang on the stock, despite Raymond James’ view that Maximus’ odds were favorable. There is no material change to the firm’s model given the contract was already considered status quo through the remaining FY25 option period, the analyst tells investors in a research note.