RadNet Surges On This Initiation

Shares of RadNet Inc.

are up Thursday morning, after analysts at B. Riley initiated coverage on the stock with a Buy rating and a $12.00 price target. According to a report issued by the Wall Street research firm, RadNet is "a growing leader in the outpatient, fixed-site, diagnostic imaging center industry. As a top consolidator in a fragmented, high barrier-to-entry industry, RadNet, with 4% market share of freestanding centers, presents a unique investment." The analysts believe RadNet will deliver solid growth on the back of its "disciplined acquisition strategy, proven management team, and firm market position." The firm conservatively models no acquisitions and estimates very modest 2015 adjusted EBITDA growth, although they believe there is significant upside to their numbers. The $12 price target implied an upside potential of more than 50 percent from the time the report was rolled out. It is based on a multiple of 8.75x B. Riley's fiscal 2015 adjusted EBITDA estimate.