Healthcare Services Group, Inc. (NASDAQ:HCSG) Sees Optimistic Price Target from UBS

Core Insights - Healthcare Services Group, Inc. (HCSG) provides management, administrative, and operational services to the healthcare industry, focusing on housekeeping, laundry, linen, facility maintenance, and dietary services [1] Financial Performance - HCSG's recent earnings report showed earnings per share of $0.23, exceeding the consensus estimate of $0.21 [3] - The company's quarterly revenue reached $464.34 million, surpassing analysts' expectations of $460.36 million, representing an 8.5% increase compared to the same period last year [3] - Net income according to GAAP increased to nearly $43 million, more than threefold from $14 million reported in the same quarter last year, with $0.36 of per-share earnings attributed to an employee retention credit [4] Market Outlook - UBS set a price target of $22 for HCSG, indicating a potential increase of approximately 16.71% from its current price of $18.85 [2][6] - Despite the positive earnings report, Weiss Ratings maintained a "hold (c-)" rating on the stock, which is currently priced at $18.93 with a market capitalization of approximately $1.37 billion [5]