Jefferies Lowers Price Target on RadNet (RDNT), Notes Encouraging Opportunities
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Price: $60.68 -8.98%
Rating Summary:
8 Buy, 1 Hold, 0 Sell
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Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
8 Buy, 1 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Jefferies is maintaining its Hold rating on shares of RadNet (NASDAQ: RDNT) while reducing its price target from $3.50 to $3.25.
The firm reports solid Q3 organic growth and current volume trends indicate the company is gaining market share from smaller competitors. The firm notes that RDNT is strongly positioned for upcoming Medicare rate cuts.
Jefferies believes the company's recent Maryland ARS acquisition will not affect 2012 earnings greatly, but should yield nice synergies for the future.
An analyst at Jefferies comments, "While RDNT has had good success in re-accelerating volume growth, Medicare reimbursement adjustments have impacted the company's ability to drive meaningful earnings growth, and the company expects incremental reimbursement cuts in FY12 that would reduce overall revenue and earnings by $2.5-$3 million."
The firm is reducing its FY11 and FY12 EPS estimates from $0.18 and $0.33 to $0.04 and $0.31. Jefferies is raising its revenue estimates for the two years from $602 million and $624 million to $610.7 million and $697.4 million.
For an analyst ratings summary and ratings history on RadNet click here. For more ratings news on RadNet click here.
Shares of RadNet closed at $2.51 yesterday.
The firm reports solid Q3 organic growth and current volume trends indicate the company is gaining market share from smaller competitors. The firm notes that RDNT is strongly positioned for upcoming Medicare rate cuts.
Jefferies believes the company's recent Maryland ARS acquisition will not affect 2012 earnings greatly, but should yield nice synergies for the future.
An analyst at Jefferies comments, "While RDNT has had good success in re-accelerating volume growth, Medicare reimbursement adjustments have impacted the company's ability to drive meaningful earnings growth, and the company expects incremental reimbursement cuts in FY12 that would reduce overall revenue and earnings by $2.5-$3 million."
The firm is reducing its FY11 and FY12 EPS estimates from $0.18 and $0.33 to $0.04 and $0.31. Jefferies is raising its revenue estimates for the two years from $602 million and $624 million to $610.7 million and $697.4 million.
For an analyst ratings summary and ratings history on RadNet click here. For more ratings news on RadNet click here.
Shares of RadNet closed at $2.51 yesterday.
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