R1 RCM’s Post-Q3 Selloff is a Significant Overreaction

RBC Capital provided its key takeaways from R1 RCM Inc. (NASDAQ:RCM) Investor Meeting, raising its price target to $14 from $12 while reiterating its Outperform rating.

The analysts continue to believe the post-Q3 selloff is a significant overreaction and the company's fundamentals remain far healthier than is being perceived.

The analysts provided several highlights, including: (1) the company provided more detail on CEO's decision to step down—despite the timing/optics, it's not related to any change in the business, (2) the company's data from the last 30 days shows no further worsening in "payer behavior" and the revised 2023 target conservatively does not assume any macro improvement, and (3) efforts to fix the two client implementations are already having a positive impact.