CRH Medical (CRHM): Selloff Overdone - Canaccord

Canaccord Genuity analyst, Richard Close, reiterated his Buy rating on shares of CRH Medical (NYSE: CRHM) and believes that Friday's 27% selloff was overdone and recommend buying shares on the weakness.

The proposed rate changes published by CMS were a surprise but the analyst estimates that the negative rate change would be less than 20% and only apply to ~75% of CRHM's volume which is associated with lower GI procedures. Assuming a 15% rate cut on this portion of the business, the analyst estimates there would be a 19% reduction in 2018 consolidated adj-EBITDA.

No change to the $8 price target.

For an analyst ratings summary and ratings history on CRH Medical click here. For more ratings news on CRH Medical click here.

Shares of CRH Medical closed at $3.80 yesterday.

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