Investment analysts at Cantor Fitzgerald started coverage on shares of R1 RCM (NASDAQ:RCM) in a research report issued to clients and investors on Tuesday, Marketbeat Ratings reports. The firm set an “overweight” rating and a $9.00 price target on the financial services provider’s stock. Cantor Fitzgerald’s price target points to a potential upside of 17.49% from the stock’s previous close.
The analysts wrote, “The revenue cycle management market represents a significant opportunity. Revenue cycle management remains an underdeveloped and fragmented market. There are many different solutions available, including consulting arrangements, point-solution technologies, and transactional outsourcing. Many providers use fragmented solutions. As a result, healthcare organizations are increasingly dissatisfied with currently available options and see a strong commercial partner to help improve performance and increase ROI. We estimate the market opportunity will increase to almost $70 billion by 2020. In addition, increasing consolidation among providers should lead to additional outsourcing. We expect revenue cycle outsourcing to grow to $7.7 billion by 2020 from $3.8 billion in 2015. We estimate the ambulatory market opportunity is approximately $30-40 billion. As hospital systems acquire physician offices, we expect the ambulatory market opportunity to expand.””
A number of other brokerages have also recently commented on RCM. Zacks Investment Research raised R1 RCM from a “sell” rating to a “hold” rating in a research note on Thursday, March 1st. Robert W. Baird reaffirmed a “hold” rating and issued a $7.00 price target on shares of R1 RCM in a research note on Monday, February 26th. BidaskClub raised R1 RCM from a “buy” rating to a “strong-buy” rating in a research note on Wednesday, December 27th. Finally, Cowen reaffirmed an “in-line” rating and issued a $10.00 price target (up from $5.00) on shares of R1 RCM in a research note on Monday. Three research analysts have rated the stock with a hold rating, one has issued a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and a consensus target price of $7.50.
R1 RCM (NASDAQ:RCM) last announced its quarterly earnings data on Friday, March 9th. The financial services provider reported ($0.08) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.01) by ($0.07). The firm had revenue of $140.30 million for the quarter, compared to the consensus estimate of $131.20 million. R1 RCM had a negative return on equity of 31.68% and a negative net margin of 13.07%. sell-side analysts predict that R1 RCM will post -0.23 EPS for the current year.
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. increased its stake in R1 RCM by 1.0% during the 4th quarter. BlackRock Inc. now owns 4,827,180 shares of the financial services provider’s stock worth $21,289,000 after purchasing an additional 46,046 shares in the last quarter. Vanguard Group Inc. bought a new stake in R1 RCM during the 2nd quarter worth approximately $10,550,000. Eversept Partners LLC bought a new stake in R1 RCM during the 4th quarter worth approximately $7,241,000. State Street Corp bought a new stake in R1 RCM during the 2nd quarter worth approximately $5,327,000. Finally, SLS Management LLC increased its stake in R1 RCM by 8.1% during the 4th quarter. SLS Management LLC now owns 1,331,162 shares of the financial services provider’s stock worth $5,870,000 after purchasing an additional 100,211 shares in the last quarter. 48.81% of the stock is owned by institutional investors and hedge funds.
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R1 RCM Company Profile
R1 RCM Inc is a provider of revenue cycle management (RCM) and physician advisory services (PAS) to healthcare providers. The Company is engaged in providing management services of revenue cycle operations for the United States-based hospitals and other medical services providers. Its primary service offering consists of end-to-end RCM, which the Company deploys through a co-managed relationship or an operating partner relationship.
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