Raymond James Upgrades Lumexa Imaging Holdings (LMRI) to Strong Buy

Raymond James analyst John Ransom upgraded Lumexa Imaging Holdings (NASDAQ: LMRI) from Outperform to Strong Buy with a price target of $23.00.

The analyst comments: "We are upgrading LMRI from Outperform to Strong Buy following a ~3x EBITDA sell-off since the IPO and ahead of the company’s 4Q print. We are maintaining our $23 price target, based on ~12x our 2027E adjusted EBITDA estimate of $256M, while taking a different approach on valuation that continues to highlight an attractive entry opportunity at the current share price. As we have interacted with potential investors since the IPO, we have received many questions about the value of the company’s unconsolidated JVs vs. the value of its consolidated centers. We commence the ol’ Fun with Numbers exercise with a sum of the parts, in which we assigned: 1) a valuation to LMRI’s share of its unconsolidated JVs based on after-tax 2026E cash flow, and 2) a standard EV/EBITDA valuation for the consolidated centers. The answer to the test – even under the most conservative multiple scenario (Figure 1) - we think that the JVs are worth ~$870M in equity value (~85% of the total market cap) and the consolidated centers are worth $642M, for a total of $15.53/share, some 44% higher than Friday’s closing price of $10.80/share. Base and bull case valuations are estimated to be $18.52/share and $21.50/share, representing 71% and 99% upside to Friday’s close, respectively."

For an analyst ratings summary and ratings history on Lumexa Imaging Holdings click here. For more ratings news on Lumexa Imaging Holdings click here.

Shares of Lumexa Imaging Holdings closed at $10.80 yesterday.

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