R1 RCM initiated with an Overweight at Cantor Fitzgerald

Cantor Fitzgerald initiated coverage of R1 RCM with an Overweight rating and $20 price target. The firm sees cross-selling opportunities between legacy R1 and recently acquired Cloudmed as driving multiyear revenue growth above industry trends over the next five years, and thinks R1’s target market of externally sourced RCM will outpace the growth of the overall market as margin-constrained providers seek to solidify revenue streams and lower expenses, the analyst tells investors in a research note.