Cantor Fitzgerald Believes R1 RCM Inc (NASDAQ: RCM) Won’t Stop Here

By Carrie Williams

In a report released today, Steven Halper from Cantor Fitzgerald initiated coverage with a Buy rating on R1 RCM Inc (NASDAQ: RCM) and a price target of $9. The company’s shares opened today at $7.16, close to its 52-week high of $7.68.

Halper observed:

“The revenue cycle management market represents a significant opportunity. Revenue cycle management remains an underdeveloped and fragmented market. There are many different solutions available, including consulting arrangements, point-solution technologies, and transactional outsourcing. Many providers use fragmented solutions. As a result, healthcare organizations are increasingly dissatisfied with currently available options and see a strong commercial partner to help improve performance and increase ROI. We estimate the market opportunity will increase to almost $70 billion by 2020. In addition, increasing consolidation among providers should lead to additional outsourcing. We expect revenue cycle outsourcing to grow to $7.7 billion by 2020 from $3.8 billion in 2015. We estimate the ambulatory market opportunity is approximately $30-40 billion. As hospital systems acquire physician offices, we expect the ambulatory market opportunity to expand.”

According to, Halper is a 5-star analyst with an average return of 17.2% and a 70.5% success rate. Halper covers the Services sector, focusing on stocks such as AmerisourceBergen Corporation, Walgreens Boots Alliance, and WellCare Health Plans.

Currently, the analyst consensus on R1 RCM Inc is Moderate Buy and the average price target is $8.67, representing a 21.1% upside.

In a report released yesterday, Cowen & Co. also reiterated a Buy rating on the stock with a $10 price target.

The company has a one-year high of $7.68 and a one-year low of $2.46. Currently, R1 RCM Inc has an average volume of 286.8K.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

R1 RCM, Inc. engages in the provision of revenue cycle management and physician advisory services to healthcare providers. The company was founded by Mary Ann Tolan and J. Michael Cline in July 2003 and is headquartered in Chicago, IL.