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MMS: Share Repurchase and New Contracts Will Drive Stronger Profit Margins

Update shared on 24 Nov 2025

Fair value Increased 4.76%
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AnalystConsensusTarget's Fair Value
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Analysts have raised their price target for Maximus from $105 to $110, citing a slight improvement in projected profit margins. This comes despite moderating revenue growth expectations and updated financial modeling.

What's in the News

  • Completed repurchase of 8,967,470 shares, representing 15.01 percent, for $678.58 million under the buyback announced in 2020. This includes 1,721,139 shares repurchased between July and September 2025 for $150.84 million (Company Filing).
  • Issued fiscal 2026 earnings guidance, expecting revenue between $5.225 billion and $5.425 billion (Company Announcement).
  • Awarded a new Joint Cyber Command & Control (JCC2) Readiness contract by the U.S. Air Force with a potential value of $86 million to lead engineering analysis and technology enhancements (Company Announcement).
  • Secured a $31 million contract with Massachusetts Health Connector to provide enrollment and premium billing services, including launching a redesigned member portal (Company Announcement).
  • Selected by Pennsylvania's Department of Human Services for a five-year, $62 million contract to administer the Enrollment Assistance Program. The program now supports CHIP recipients with new digital engagement tools (Company Announcement).

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from $105 to $110.
  • The discount rate increased moderately and is now at 7.73 percent compared to 7.06 percent previously.
  • Revenue growth expectation has fallen, updated from 3.89 percent to 2.81 percent.
  • Net profit margin ticked up marginally and is now at 8.04 percent versus 7.99 percent prior.
  • Future P/E has moved higher, rising from 11.9x to 13.9x.

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Disclaimer

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