Needham Believes Hill-Rom (NYSE: HRC) Won’t Stop Here

By Jason Carr

In a report released today, Michael Matson from Needham reiterated a Buy rating on Hill-Rom (NYSE: HRC), with a price target of $95. The company’s shares opened today at $80.19, close to its 52-week high of $81.33.

Matson wrote:

“We are initiating coverage of HRC with a Buy rating. Recent acquisitions have diversified HRC’s business and should drive stronger margin expansion and faster EPS growth. Additionally, new products should drive higher organic revenue growth. And while large (>$1B) acquisitions are probably off the table for now, we see potential for additional tuck-in deals over the next 12-18 months.”

According to TipRanks.com, Matson is a top 100 analyst with an average return of 15.6% and a 69.7% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

Hill-Rom has an analyst consensus of Moderate Buy, with a price target consensus of $90.50.

Based on Hill-Rom’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $679 million and quarterly net profit of $34.4 million. In comparison, last year the company earned revenue of $655 million and had a net profit of $45.3 million.

Based on the recent corporate insider activity of 20 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Andreas Frank, the SVP Corp Develop & Strategy of HRC sold 10,660 shares for a total of $838,040.

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Hill-Rom Holdings, Inc. is a medical technology company, which focuses on patient care solutions that improve clinical and economic outcomes. It operates through the following segments: North America Patient Support Systems, International Patient Support Systems, Front Line Care, and Surgical Solutions.