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On Monday, Benchmark analysts reaffirmed their Buy rating and maintained a $165.00 price target for Huron Consulting Group (NASDAQ:HURN) stock, representing an 18% upside from the current price of $143.28. The stock has demonstrated remarkable strength with a 61.7% return over the past year, according to InvestingPro data. This decision follows discussions with senior management at the 5th Annual Benchmark Healthcare House Call conference last week.
The analysts noted that recent and proposed government actions have had a neutral-to-positive impact on Huron’s business, particularly with its Healthcare and Education clients. Since the company’s first-quarter earnings call, there has been an increase in client discussions about adapting to recent administrative moves, which include proposed caps on NIH funding and Medicare payment cuts to 340B covered entities. Additionally, proposals in the House budget bill to reduce Medicaid spending and not extend ACA premium tax credits are under consideration. The company’s strong financial health, evidenced by a current ratio of 2.08 and an excellent Altman Z-Score of 6.58, positions it well to navigate these regulatory changes.
Importantly, Huron Consulting is not experiencing any hesitation from clients regarding current engagements or sales funnels. In fact, the company reported an acceleration in sales conversions within its Healthcare segment, focusing on projects in Revenue Cycle Management (RCM) and efficiency. These efforts aim to assist health systems in addressing potential financial pressures.
Huron’s fiscal year 2025 guidance, laid out in February, considered a variety of macroeconomic scenarios that informed the provided ranges. The company’s strategic approach appears to be well-aligned with the current market conditions, as reflected in the reaffirmed rating and price target. Based on InvestingPro analysis, the stock is currently trading near its Fair Value, with a P/E ratio of 21.4x and strong earnings growth potential. For deeper insights into Huron’s valuation and 8 additional ProTips, including detailed financial analysis and peer comparisons, explore the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Huron Consulting Group Inc. reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.68, significantly higher than the forecasted $1.16, and reported revenue of $395.7 million, exceeding the anticipated $389.27 million. This performance reflects a robust 11.2% year-over-year revenue growth, driven by all three of Huron’s operating segments. Huron reaffirmed its full-year 2025 guidance, projecting revenue between $1.58 billion and $1.66 billion and an adjusted EBITDA margin of 14-14.5%.
In addition to financial results, Huron announced that its stockholders approved an amendment to the Amended and Restated 2012 Omnibus Incentive Plan, increasing the number of shares authorized for issuance by 900,000. The amendment had previously been approved by the Board of Directors, pending stockholder approval. Furthermore, PricewaterhouseCoopers LLP was ratified as the company’s independent registered public accounting firm for the fiscal year ending December 31, 2025. These developments were part of Huron’s recent corporate governance actions and stockholder decisions.
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