Raymond James analyst Nicholas Jansen has upgraded healthcare technology company HMS Holdings Corp. to "strong buy" from "outperform," writing that recent selling activity has given the stock more potential to grow.

The company's second-quarter results were obscured by "noise," Jansen wrote, including fallout from an accounting change. But the analyst said the company's 11% sequential core revenue growth "instills confidence" going into the second half of the year.

The analyst also noted that political overhangs for the stock are ending, with attempts in Congress to overhaul, repeal or replace the Affordable Care Act winding down.

Jansen left his price target at $23 per share. His 2017 and 2018 EPS estimates were unchanged at 42 cents and 61 cents, respectively.