- Raymond James upgraded Radnet Inc (NASDAQ:RDNT) from Market Perform to Outperform and a price target of $30 following 4Q22 results that came in ahead of expectations.
- The management noted they experienced $30 million in incremental labor costs in 2022, which should move to roughly $17 million in incremental costs for 2023.
- Management provided incremental color on the AI segment, with the Enhanced Breast Cancer Detection (EBCD) program expected to generate most of the segment’s 2023 revenue.
- The analyst writes that the upgrade is predicated on the following:
- A core business supported by structural tailwinds, driving MSD-HSD EBITDA growth as labor pressures ease.
- The shedding of the AI overhang as there is now improved strategic visibility.
- A reasonable valuation (8.3x 2024E EBITDA) leaves ample room for upside if the stock can earn a reputation of a dependable compounder.
- The analyst writes that with labor and reimbursement headwinds easing, investors are expected to grow increasingly comfortable with the name given a favorable demand backdrop, solid core business, and AI segment gaining momentum.
- Price Action: RDNT shares are trading 4.72% higher at $23.81 on the last check Friday.
Why SeaStar Medical Holding Company Stock Is Soaring
SeaStar Medical Holding Corporation (NASDAQ: ICU) shares are trading higher Friday after the company announced it notified the SEC that it is requesting to withdraw its registration statement because it has elected
