UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on RadNet
In a report published Monday, Deutsche Bank reiterated its Buy rating on RadNet (NASDAQ: RDNT), but slightly lowered its price target from $6.50 to $6.00.
Deutsche Bank noted, “Q3 results showed stability on an organic basis, and YTD FCF of $0.52 per share (before M&A) highlights improving CF profile. We believe RDNT is nearing an inflection point w/annual EBITDA and EPS ($0.50+) which might catch the attention of small cap value investors in 2013. However, we are dialing-down 2013 EPS to $0.51 (from $0.61) as we believe Medicare rate pressure from the final physician fee schedule rule and sequestration will have a bigger impact than originally expected. 2013 EBITDA moves to $127M (from $135M), with some benefit below the EBITDA line from recent financings and assumed de-leveraging.”
RadNet closed on Friday at $2.50.
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