Analyst David S Macdonald of Truist Financial maintained a Buy rating on Radnet (RDNT – Research Report), with a price target of $40.00.
David S Macdonald’s Buy rating for Radnet’s stock (RDNT) primarily stems from several fundamental aspects. Firstly, Radnet’s 3Q results showcased robust top and bottom-line beats, bolstered by strong volume trends and elevated FY23 guidance. The company’s total revenues, primarily driven by high service fee revenues, surpassed both the consensus and Macdonald’s own estimates. Additionally, Radnet managed to maintain cost efficiency despite ongoing labor and inflationary pressures, reflected in the strong adjusted EBITDA figures. An upward revision in the FY23 adjusted EBITDA expectations also contributed to the positive rating.
Furthermore, Radnet demonstrated impressive procedure volume growth, particularly in advanced procedures such as MRI, CT, and PET/CT, which exceeded Macdonald’s expectations. The company also expanded its partnership with Cedars-Sinai, adding more imaging centers to its portfolio, indicative of strategic growth. Finally, Radnet’s AI segment, despite a slight revenue shortfall, showed promising progress with profitability surpassing estimates and guidance being reaffirmed. The company’s strong financial position, coupled with growing opportunities for M&A and partnerships, further solidifies its potential for future growth, thus justifying Macdonald’s Buy rating.
RDNT’s price has also changed slightly for the past six months – from $28.750 to $28.720, which is a -0.10% drop .
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Radnet (RDNT) Company Description:
RadNet, Inc. provides freestanding, fixed-site outpatient diagnostic imaging services in the United States. Its centers provide physicians with imaging capabilities to facilitate the diagnosis and treatment of diseases and disorders and reduce unnecessary invasive procedures. It offers magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures. The company was founded by Howard G. Berger in 1981 and is headquartered in Los Angeles, CA.
Read More on RDNT:
- RadNet Reports Third Quarter Financial Results and Revises Upwards 2023 Financial Guidance Range for Adjusted EBITDA
- RDNT Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- RadNet, Inc. Announces Date of its Third Quarter 2023 Financial Results Conference Call
- RadNet management to meet with B. Riley
- RadNet, Inc. to Present at the Sidoti & Company Fall 2023 Virtual Conference on Wednesday, September 20th
