Lumexa Imaging Holdings: Capitalizing on Outpatient Imaging Tailwinds with Sustainable Growth and Attractive Risk-Reward

Stephen Baxter, an analyst from Wells Fargo, has initiated a new Buy rating on Lumexa Imaging Holdings, Inc. (LMRI).

Stephen Baxter has given his Buy rating due to a combination of factors that highlight Lumexa Imaging Holdings’ strong strategic positioning and growth prospects. He views LMRI as a leading player in the outpatient imaging space, benefiting from the healthcare system’s shift toward lower-cost, freestanding imaging centers that offer a more convenient patient experience. The company’s rapid expansion from a small base to one of the largest national platforms, along with its presence in attractive states such as Texas, North Carolina, and Georgia, underpins his confidence in its ability to sustain above-market growth. Baxter also emphasizes the importance of Lumexa’s joint ventures with hospital systems, particularly the large and growing partnership with Baylor Scott & White Health, which provides both volume visibility and a pipeline for continued de novo center openings.

At the financial level, his Buy rating reflects expectations for solid same-facility revenue growth driven by higher volumes and a richer mix of advanced imaging services, supplemented by a steady pace of new center openings. These dynamics support his projection for mid- to high-single-digit EBITDA growth over the next several years, even after accounting for added public company costs. Baxter’s $22 price target is based on an EBITDA multiple that is set at a modest discount to comparable firms, acknowledging Lumexa’s status as a newly public company with concentrated ownership while still recognizing its compelling risk-reward profile. Although he notes risks around reimbursement, reporting complexity, and radiology staffing, he concludes that the structural tailwinds and the company’s market position justify an Overweight/Buy recommendation at current valuation levels.

In another report released today, Jefferies also initiated coverage with a Buy rating on the stock with a $23.00 price target.