In a report released today, Steven Halper from Cantor Fitzgerald reiterated a Buy rating on R1 RCM Inc (RCM), with a price target of $14. The company’s shares opened today at $11.25, close to its 52-week high of $11.74.
Halper commented:
“. We reiterate our Overweight rating on R1 RCM shares and increase our price target to $14 from $13. This morning, the company reported 1Q19 results with revenue and adjusted EBITDA nicely ahead of our estimates and FactSet consensus. Importantly, the company also announced a new operating partner, Quorum Health (QHC – Not Covered). Quorum will implement RCM’s comprehensive services across its 27 hospitals. With the Quorum signing, the company has achieved about half of its expected 2019 contract wins (in terms of net patient revenue – NPR). The contract win certainly validates our view that new contract wins outside of Ascension will increase over time. The company is likely to refinance its debt this year, which will result in lower interest expense.”
According to TipRanks.com, Halper is a top 100 analyst with an average return of 16.9% and a 63.4% 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 $11.74 and a one-year low of $7.10. Currently, R1 RCM Inc has an average volume of 970.8K.
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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.
