Performant Financial initiated with a Buy at B. Riley

B. Riley analyst Kyle Bauser initiated coverage of Performant Financial with a Buy rating and $8 price target. Performant Financial is the only remaining pure-play healthcare “payment integrity” provider and despite being a fraction of the size of its larger competitors, including Optum and Cotiviti, Performant continues to win highly coveted contracts away from these peers, the analyst tells investors in a research note. The company remains a top contractor for Medicare/CMS, and the related credibility has helped to drive 60% annual sales growth within commercial payers, B. Riley says.