NEW YORK (AP) -- Shares of Examworks Group Inc. hit an 18-month high on Monday after a Credit Suisse analyst raised his price target on the stock.
THE SPARK: Analyst Ralph Giacobbe, who rates Examworks shares at "Outperform," said he is more confident the company will be able to meet its revenue goals in 2013. Giacobbe said the company is about to start getting revenue from two contracts it won last year, and they should allow it to reach its revenue estimates for the year.
The analyst said the company's organic trends are getting better and Examworks won't have to rely on acquisitions to provide as much of its growth in the future. He raised his target on the stock to $21 from $18.
THE BIG PICTURE: Examworks provides independent medical examinations and other services for the insurance and legal industries. The Atlanta company took losses in 2011 and 2012. However revenue rose 31 percent to $521.2 million in 2012. The company said acquisitions were responsible for almost all of the growth. Excluding acquisitions and other special items, Examworks expects revenue to grow 5 to 7 percent this year.
FactSet says analysts expect $605.7 million in revenue on average.
SHARE ACTION: Examworks rose $1.06, or 6.2 percent, to $18.09 in afternoon trading. Earlier the shares traded as high as $18.45, their highest price since August 2011. The company's initial public offering priced at $16 in October 2010. The stock traded at a peak of $26.48 in July 2011 and fell to a low of $6.39 in November of that year.