UPDATE: Duncan Williams Downgrades Healthcare Services Group to Hold, Removes PT

A report from Duncan Williams downgrades Healthcare Services Group (NASDAQ: HCSG) from Buy to Hold.

The report states, “Our downgrade is purely based on valuation as HCSG is trading at 26 times our 2012 EPS estimate of $0.68. This valuation represents a premium to our current 2012 revenue growth estimate of 10% and our 2012 earnings growth estimate of 17%. We continue to believe that HCSG is a core holding for investors that want to participate in the outsourcing trend among healthcare providers”.

HCSG closed yesterday at $17.74.