Boston, MA 05/13/2014 (wallstreetpr) – While a solid bottom line achieved during the first quarter has helped RadNet Inc. (NASDAQ:RDNT) to fuel a rally, a price target upgrade from the Deutsche bank too complemented the perfect scenario that the company finds itself in.
Price Target Raised
Reportedly, the research firm indicated its optimism about the stock after it raised its price target from $5 to $7 and maintained a ‘buy’ rating on the stock. The revision in the price target comes on the basis of the management’s guarantee to de-leverage and free cash flow growth.
During the quarter, RadNet Inc. (NASDAQ:RDNT) was able to cut down its loss to just half of what Wall Street had expected. The net loss for the quarter came in at $(0.03) per share as against the market consensus of $(0.06). The company highlighted that its first quarter faced challenges on account of bad weather which negatively impacted its business. The company recorded 1% lesser MRIs and 3% fall in PET/CT scan as against in the previous year. The revenue for the quarter at $168.9 million missed to come in line with the market consensus of $173.5 million, but the narrowed net loss in the quarter was able to offset the pessimism about lower revenues.
Raised Guidance
In the meanwhile, RadNet Inc. (NASDAQ:RDNT) continues to be positive about its forthcoming quarters, which is reflected through its increased guidance for the year. The company has raised the full year guidance by $2 million in respect to both low and high brackets, which is now in between $112-$122 million. The free cash flow guidance is also raised by $4 million to $34-$44 million. The company keeps its full year revenue guidance unchanged at $700-$730 million.
The company’s first quarter report clearly came as a sweet surprise to the investors amid a general negative outlook about the company. Resultantly, the shares of RadNet Inc. (NASDAQ:RDNT) jumped along with a three time surge in its volume on Friday.
