As previously reported, JMP Securities analyst David Scharf upgraded WageWorks to Outperform from Market Perform, noting that the stock has declined about 40% since September 13. He still sees a relatively stable and moderately defensive recurring revenue model and has greater comfort that the company has retained its key channel partners in the wake of last year's loss, Scharf tells investors. Given the intensifying selloff in the shares recently, he believes the risk/reward has become more biased to the upside, the analyst adds. Scharf set a $37 price target on WageWorks shares.