Goldman Sachs Upgrades Hill-Rom Holdings (HRC) to Buy

Goldman Sachs upgraded Hill-Rom Holdings (NYSE: HRC) from Neutral to Buy with a price target of $48.00 (from $42.00) citing stabilizing business with a transformation underway.

Analyst David Roman said, "... we see the core capex (hospital bed) businesses stabilizing, cost restructuring efforts taking hold, and a more aggressive capital allocation on tap. HRC has been volatile the past year, as uncertainty around growth and inconsistent performance vs. expectations has driven the stock to be ±15% from a mean daily price of $38.11. From here, we expect strategic M&A to compound accelerating organic growth. Valuation is undemanding relative to the opportunity set, in our view, and we are increasingly confident in management’s approach to the business."

For an analyst ratings summary and ratings history on Hill-Rom Holdings click here. For more ratings news on Hill-Rom Holdings click here.

Shares of Hill-Rom Holdings closed at $40.59 yesterday.

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