Richard Close at Avondale Partners has reaffirmed his buy rating and target price of $33.50 for HealthStream, saying that the workforce development company has multiple avenues for growth in addition to its ICD-10 training products. Revenue growth excluding ICD-10 has accelerated above 20 percent, Close said, and the company's other service lines should "foster growth and ease headwind of ICD-10 roll-off."
The Southern Poverty Law Center, Tennessee Justice Center and National Health Law Program are holding a press conference call at 11 a.m. Wednesday to announced the filing of a federal lawsuit against the state of Tennessee.
The suit is expected to address the failures within the state's Medicaid program, TennCare. Earlier this month, officials with the Center for Medicaid and CHIP Services outlined six areas in which TennCare is noncompliant with Affordable Care Act requirements.
Following the rebuke, the Times Free Press reported that the three legal advocacy groups were closely monitoring TennCare's response, and that a lawsuit would be a last resort in solving the state-run agency's issues.
At about 1 p.m. Central Tuesday, shares of HealthStream were among the market's biggest movers, climbing almost 20 percent to about $26.50 on the back of its solid second-quarter earnings. Volume was heavy, with the number of shares changing hands on track to triple the stock's daily average.