RBC says $13.75 a ‘reasonable starting point,’ R1 RCM fair value closer to $19

RBC Capital notes that New Mountain Capital, which owns about one-third of R1 RCM shares, disclosed that it had requested a waiver of standstill restrictions that would allow it to propose an offer to acquire the rest of the shares outstanding and that the request also included a draft proposal with a cash purchase price of $13.75 per share. While the firm views a cash offer price of $13.75 per share as “a reasonable starting point,” it continues to believe that the fair value of shares is closer to the firm’s current $19 price target, which it maintains ahead of R1 RCM’s scheduled Q4 report tomorrow. RBC keeps an Outperform rating on the shares.