Cantor Fitzgerald analyst Steven Halper reiterated a Buy rating on R1 RCM Inc (NASDAQ: RCM) today and set a price target of $10. The company’s shares opened today at $8.46, close to its 52-week high of $9.40.
“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 21.4% and a 75.2% 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.
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.