RCM - R1 RCM draws bullish views at Barclays on Cloudmed acquisition
- Barclays has reinstated its coverage on revenue cycle management (RCM) company R1 RCM ( NASDAQ: RCM ) with an Overweight recommendation citing its recent acquisition of Cloudmed, an operator of a revenue intelligence platform, for more than $4B early this year.
- Citing a new hospital survey, the analyst Steve Valiquette argues that the company, with a widened product portfolio and revenue/cost synergies, has “an incrementally positive demand outlook for outsourced RCM services.”
- The analyst sees favorable industry setup for the company as labor and cost pressures fuel interest for fully outsourced solutions.
- “With labor shortages challenging most of the healthcare services universe, we believe that R1 is one of the few companies that is positioned to be a net beneficiary from labor challenges,” Valiquette wrote, with a $29 per share target on the stock.
- R1 RCM ( RCM ) was under Seeking Alpha’s Catalyst Watch for this week ahead of a conference call to discuss the company's updated guidance and business outlook .
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R1 RCM draws bullish views at Barclays on Cloudmed acquisition