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TheStreet.com says MAXIMUS shares have value at current levels
By: Stock Masters   Thursday, December 13, 2007 12:48 PM

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TheStreet.com today put out an article on MAXIMUS, Inc. (MMS) titled: Should You Buy It? Maximus to the Max (click here to read).  At the end of the article David Peltier comes to the conclusion that  despite Maximus shares 27% climb year to date, he continues to believe that it offers value at current levels. While failure to sell the entire business was a near-term disappointment to some investors, Peltier believes that focus will shift toward the company's impressive top-line growth and improved profitability in its core outsourcing business.

The Masters wrote yesterday: How often do you see this -- MAXIMUS (MMS) upgraded to Aggressive Buy

Friends, it's an All Out Buy with today's minor market crash. 

Credit CEO Richard Montoni, who took office in April 2006, for Maximus' new strategy and growth outlook. His goal is to shift the company away from growing revenue at all costs toward more -- and smaller -- contracts (under $50 million) that usually carry higher margins.

Maximus is targeting $850 million to $880 million of revenue for next year, including 15% to 20% organic growth. Because of the visibility of its government contracts, Maximus estimates that 83% of expected 2008 revenue is already booked into the backlog.

Even if some spending is cut because of depressed local government budgets, about 70% of the company's sales come from federally mandated programs.


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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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