Maximus upgraded to Outperform from Market Perform at Raymond James

Raymond James upgraded Maximus (MMS) to Outperform from Market Perform with a $90 price target While 2023 and the first 11 months of 2024 were the best periods for the government service sector in more than 20 years, a new administration, a “provocative group” of political appointee nominations, and President-elect Trump’s Department of Government Efficiency’s “have significantly dented investor psyche,” the trading multiples, and halted stock momentum over the last 45 days, the analyst tells investors in a research note. The firm believes the “dislocation in equities has created opportunities” across its government IT coverage. It made four rating changes heading into 2025. Maximus trades at a discount to peers and its historical multiples, but nearly 75% of its revenue is in mandatory spend areas that the company can aid in efficiency initiatives, contends Raymond James.