Radnet's Q1 Performance Impresses Analyst, Price Target Raised by 14.5%

By Don Francis, Editor
May 16, 2024 9:09 AM UTC
Radnet's Q1 Performance Impresses Analyst, Price Target Raised by 14.5%

Truist Securities's David S Macdonald raised their price target on Radnet (NASDAQ: RDNT) by 14.5% from $55 to $63 on 2024/05/15. The analyst reiterated their Strong Buy rating on the stock.

Macdonald's positive outlook on Radnet comes after the company's strong performance in the first quarter of 2024. Radnet reported earnings per share (EPS) of $0.07, beating both the Zacks Consensus Estimate of $(0.09) and the EPS of $(0.22) in the first quarter of 2023. Additionally, the company's revenue of $431.71M exceeded the Zacks Consensus Estimate by 2.41% and showed a significant increase of 10.5% compared to the same quarter last year.

In terms of guidance for the full year 2024, Radnet's management raised their expectations. They now anticipate revenue in the range of $1.675B to $1.725B, up from the previous guidance of $1.65B to $1.70B. They also raised their EBITDA guidance to $255M to $265M, up from $250M to $260M. Moreover, Radnet plans to open around a dozen new imaging centers by the end of 2024 and expand their joint venture offerings with health system partners.

Macdonald highlighted Radnet's leadership position in the diagnostic imaging industry, impressive scale, and multi-modality approach. The analyst also mentioned that the company is benefiting from several favorable secular tailwinds.

According to President & CEO Dr. Howard Berger, Radnet's strong growth is sustainable as they continue to execute various initiatives. The company is expanding capacity by developing and constructing new imaging centers to address high demand and patient backlogs in many local markets. Radnet is also focusing on digital health initiatives, including the rollout of the Enhanced Breast Cancer Detection (EBCD) program and other clinical AI solutions for lung and prostate cancers. Furthermore, the development of their DeepHealth OS technology platform is progressing, with plans to implement it within Radnet in Q3 of this year and external customers in Q1 2025.

Taking a look at analyst ratings for RDNT, 75% of top-rated analysts currently rate the stock as a Strong Buy or Buy, while 25% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that RDNT will deliver earnings per share (EPS) of $0.49 in the upcoming year. If the analysts' predictions hold true, this would represent a 48.7% increase in yearly EPS compared to the previous year.

Since Radnet's latest quarterly report on 2024/05/08, the stock price has surged by 15%. On a year-over-year basis, the stock has seen a remarkable increase of 110.2%. During this period, RDNT has outperformed the S&P 500, which has risen by 28.3%.

Truist Securities analyst David S Macdonald, who raised the price target on Radnet, is ranked in the top 8% out of 4,586 Wall Street analysts by WallStreetZen. Macdonald specializes in the Healthcare and Consumer Defensive sectors and has an average return of 11.9% with a win rate of 66.7%.

Radnet, Inc. is a leading provider of outpatient diagnostic imaging services in the United States. The company offers a wide range of services, including magnetic resonance imaging, computed tomography, nuclear medicine, mammography, ultrasound, and diagnostic radiology. Radnet also develops and sells computerized systems for the diagnostic imaging industry and deploys AI solutions to enhance radiologist interpretation of images, particularly in the field of mammography, lung, and prostate cancer. As of December 31, 2021, Radnet owned and managed 347 centers across several states.

What is the target price for Radnet?

WallStreetZen tracks the performance of nearly 4,000 Wall Street analysts, whom we rank by average returns, frequency, and win-rate (backtested over multiple years).

Create a free watchlist and be the first to know when top-rated Wall Street analysts revise their RDNT stock forecast.

Want to get in touch? Email us at news@wallstreetzen.com.

WallStreetZen and Don Francis do not hold any positions in the companies mentioned in this article. The information and statistics provided herein are presented for general informational purposes only and may not be accurate, complete, or up-to-date. It should not be interpreted as a recommendation to buy or sell any stocks and should not be solely relied upon for making investment decisions. It does not take into account your financial situation or risk profile. All investors should conduct their own investment due diligence before buying a stock. WallStreetZen expressly disclaims any liability for the accuracy, reliability, or completeness of the analysts' information, price targets, ratings, or opinions.

WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.