R1 RCM initiated with an Outperform at Leerink

Leerink analyst Michael Cherny initiated coverage of R1 RCM with an Outperform rating and $14 price target. The company’s long-term revenue and EBITDA visibility has somewhat been overshadowed by a couple of smaller customer go-lives that ran into challenges, though the firm still sees R1 as being able to sustain a durable growth rate from its core end-to-end customers. While the stock has rebounded from the bottom, its current multiple does not accurately reflect the durability of growth, the analyst tells investors.