On Wednesday, Barclays (LON:BARC) adjusted its stance on R1 RCM Inc (NASDAQ:RCM), downgrading the stock from Overweight to Equalweight while keeping the price target steady at $14.00. This shift in rating follows a recent takeover bid for the company.
The downgrade was prompted by a buyout offer of $13.75 per share from NMC, which Barclays believes has increased the likelihood of a deal due to the significant private equity ownership involved. NMC itself holds a 32% stake in R1 RCM, with another major shareholder, TowerBrook, owning approximately 20%.
Barclays' analyst highlighted that the Overweight thesis was accelerated by the bid from NMC. The firm's unchanged price target of $14 indicates that the current offer is in line with their valuation of the company.
The analyst's comments suggest that the concentrated private equity ownership of R1 RCM makes a potential acquisition by NMC more probable. This development could have implications for the company's stock as the market processes the potential for a finalized deal.
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