Analyst Bill Sutherland of Benchmark Co. reiterated a Buy rating on Rcm Technologies (RCMT – Research Report), with a price target of $30.00.
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Bill Sutherland has given his Buy rating due to a combination of factors that suggest a positive outlook for RCM Technologies. Despite a miss in the fourth quarter, the company maintains a promising forecast with expectations of low double-digit adjusted EBITDA growth by 2025. The expansion of new business pipelines across all segments, particularly in Specialty Healthcare, is anticipated to drive significant revenue growth in the coming years.
Additionally, the Engineering Services segment is experiencing strong momentum, and there is a recovery in the Aerospace & Defense pipeline. Improvements in cash flow and a reduction in days sales outstanding further bolster the company’s financial position. The price target of $30 reflects a conservative valuation, yet it remains attractive compared to peers, considering the company’s liquidity constraints. These factors collectively support the Buy rating from Sutherland.
Sutherland covers the Healthcare sector, focusing on stocks such as AMN Healthcare Services, Surgery Partners, and Cross Country Healthcare. According to TipRanks, Sutherland has an average return of -6.5% and a 36.72% success rate on recommended stocks.
In another report released on March 19, B.Riley Financial also maintained a Buy rating on the stock with a $30.00 price target.