Hill-Rom Gets a Buy Rating from Needham


In a report released today, Michael Matson from Needham reiterated a Buy rating on Hill-Rom (NYSE: HRC), with a price target of $106. The company’s shares closed on Friday at $87.18.

Matson commented:

“HRC beat consensus F2Q18 revenue and EPS. Management reiterated its FY18 revenue guidance and raised its FY18 adjusted EPS guidance. Organic revenue growth was flat at 2% in F2Q18 vs. 2% in F1Q18. Margins increased Y/Y with adjusted gross margin up 130 bps and adjusted operating margin up 120 bps. HRC also announced that John Groetelaars (legacy C.R. Bard) is being named CEO to replace John Greisch who is retiring. We expect new products, including the Centrella bed, to drive accelerating revenue growth while cost reductions and portfolio management drive margin expansion. HRC shares remain at a discount to peers (2018E P/E of 18.3x vs. small/mid-cap value peers at 21.6x) and we reiterate our Buy rating.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 8.5% and a 61.6% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Hill-Rom has an analyst consensus of Moderate Buy, with a price target consensus of $95.50.

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The company has a one-year high of $91.11 and a one-year low of $71.91. Currently, Hill-Rom has an average volume of 468.6K.

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Hill-Rom Holdings, Inc. is a medical technology company, which focuses on patient care solutions that improve clinical and economic outcomes. It operates through three segments: Patient Support System, Front Line Care, and Surgical Solutions.

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