JPMorgan Resumes R1 RCM Inc (RCM) at Overweight Citing Favorable Backdrop

JPMorgan analyst Anne Samuel resumes coverage on R1 RCM Inc (NASDAQ: RCM) with a Overweight rating and a price target of $33.00.

The analyst comments "The macro backdrop for RCM is favorable with low-doubledigit annual industry growth as the company’s customer base of hospital systems looks to outsource its revenue cycle function. R1 RCM has an attractive financial profile, growing revenue above the market, and we estimate a 16% organic three-year forward CAGR, when combined with Cloudmed’s 20%+ growth points to a consolidated 20%+ forward growth rate. On the bottom line, automation-driven gross margin expansion should result in core EBITDA expansion and when combined with Cloudmed’s >40% margin profile and synergies form the acquisition should equate to 30%+ medium term and 35% LT margins."

For an analyst ratings summary and ratings history on R1 RCM Inc click here. For more ratings news on R1 RCM Inc click here.

Shares of R1 RCM Inc closed at $25.00 yesterday.

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