Seeking Alpha
Editor's notes: A fund manager thinks PFMT's secular growth opportunities and attractive valuation have been obscured by noise related to a myriad of mostly government-related issues. 60% upside.

Performant Financial (PFMT) has faced a steady cadence of transitory headwinds, setbacks, and delays since becoming a public company. These various events have conspired to sour market sentiment and distract investors from the massive long-term secular growth opportunity that awaits the company. The recent delays and disappointments have likely caused investors to move to the sidelines during PFMT's contract rebid period. PFMT is the incumbent prime contractor for two key Federal contracts (CMS RAC and DOE Student Loan Recovery) that are set to be awarded in the next several months. Our research indicates that PFMT will likely win both re-bids, which should provide much greater visibility for the business and likely result in multiple expansion as investors get...

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