Needham analyst Michael Matson reiterated a Buy rating on Hill-Rom (HRC) today and set a price target of $116. The company’s shares opened today at $103.46.
Matson said:
“HRC announced that it has entered into a definitive agreement to acquire Voalte (private) for $180M up front and up to $15M in commercial-based milestones. HRC believes it can absorb the dilutive impact of the deal in FY19, expects the transaction to close in F3Q19, and estimates the deal to become increasingly accretive beginning in FY20. Voalte offers smartphone and web-based applications that enable caregivers to communicate securely and provides managers data analytics tools, respectively. The Voalte deal seems to make financial (accretive to revenue growth and margins) and strategic (further diversifies HRC away from capital equipment sales and allows for cross-selling opportunities in its care communications business) sense, in our view, and we reiterate our Buy rating.”
According to TipRanks.com, Matson is a top 100 analyst with an average return of 12.6% and a 66.1% 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 $107.33.
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Based on Hill-Rom’s latest earnings release for the quarter ending December 31, the company reported a quarterly net profit of $42.2 million. In comparison, last year the company had a net profit of $88.3 million.
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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 the following business segments: Patient Support System, Front Line Care, and Surgical Solutions.
