Hill-Rom (HRC) Receives a Buy from Needham


In a report released today, Michael Matson from Needham reiterated a Buy rating on Hill-Rom (HRC), with a price target of $116. The company’s shares opened today at $105.60, close to its 52-week high of $105.78.

Matson wrote:

“HRC beat consensus F1Q19 revenue and EPS. Management maintained its FY19 revenue but lowered its FY19 EPS guidance due only to ASC 606. Core revenue growth improved to 6% in in F4Q18. On an ASC 605 basis, margins increased Y/Y with adjusted gross margin up 60 bps and adjusted operating margin up 110 bps. Given HRC’s new product-driven revenue growth acceleration and strong margin performance from cost reductions and portfolio management, we believe HRC shares should trade more in line with peers (2019E P/E of 19.4x vs. small/mid-cap value peers at 22.3x) and we reiterate our Buy rating.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 11.1% and a 63.2% 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 $103.

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Based on Hill-Rom’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $90.4 million. In comparison, last year the company had a net profit of $88.3 million.

Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2018, Andreas Frank, the SVP, Pres. Front Line Care of HRC sold 7,454 shares for a total of $713,765.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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

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