Cantor Fitzgerald analyst Steven Halper maintained a Buy rating on R1 RCM Inc (NASDAQ: RCM) today and set a price target of $10. The company’s shares closed yesterday at $8.46, close to its 52-week high of $9.40.
Halper noted:
“We reaffirm our OW rating on RCM. R1 is a pure-play, revenue-cycle management provider that owns and operates a number of technology platforms in a market we project will grow to almost $70B by 2020. In addition, increasing consolidation in the healthcare market is likely to drive growth in outsourcing to $7.7B by 2020. We believe R1 is positioned to benefit from an expanded relationship with its long-standing customer, Ascension. Although Ascension is an important customer, it is also a significant shareholder, which offsets, in our opinion, the customer concentration risk.”
According to TipRanks.com, Halper is a top 100 analyst with an average return of 22.2% and a 75.9% success rate. Halper covers the Services sector, focusing on stocks such as WellCare Health Plans, Tivity Health Inc, and Hms Holdings Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for R1 RCM Inc with a $10.50 average price target, which is a 24.1% upside from current levels. In a report issued on August 2, Robert W. Baird also reiterated a Buy rating on the stock with a $11 price target.
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Based on R1 RCM Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $23.3 million. In comparison, last year the company had a GAAP net loss of $6.7 million.
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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.
