R1 RCM downgraded to Hold from Buy at Truist

Truist downgraded R1 RCM to Hold from Buy with an unchanged $16 price target after New Mountain’s recent offer to buy the company for $13.75 per share. From a leveraged buyout point of view, a private equity firm can pay close to $17 per share and generate a reasonable IRR, the analyst tells investors in a research note, adding however that it does not see any obvious strategic buyers here. Truist adds that its sees the deal probability at about 50%.