In a report released today, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on R1 RCM Inc (RCM), with a price target of $13. The company’s shares opened today at $10.57, close to its 52-week high of $11.
Halper observed:
“. We reiterate our Overweight rating on RCM shares and increase our 12-mo. PT to $13 from $11. We recently hosted a series of investor meetings for management. During the meetings, management reiterated its view that it continues to execute on implementing previously signed contracts. Over time, we expect RCM to add new clients and diversify away from Ascension. Our price target increases due to higher margin assumptions as contracts mature in 2021 and 2022. The company should start to see benefits from its internal automation project by that time as well. We believe our DCF model assumptions are mostly conservative.”
According to TipRanks.com, Halper is a 5-star analyst with an average return of 17.7% and a 61.4% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
R1 RCM Inc has an analyst consensus of Moderate Buy, with a price target consensus of $12.50.
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The company has a one-year high of $11 and a one-year low of $7.10. Currently, R1 RCM Inc has an average volume of 916.5K.
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R1 RCM, Inc. engages in the provision of revenue cycle management to healthcare providers. It offers end-to-end, modular revenue cycle, and physician advisory services. The company was founded by Mary Ann Tolan and J. Michael Cline in July 2003 and is headquartered in Chicago, IL.
