Raymond James upgraded Lumexa Imaging (LMRI) to Strong Buy from Outperform with an unchanged price target of $23. The firm cites valuation for the upgrade following the recent selloff in the shares. Lumexa trades at a six-times EBITDA discount to RadNet (RDNT), the analyst tells investors in a research note. Raymond James believes some discount is warranted, but sees “several factors that should help narrow the gap over time.” These include Lumexa’s “superior and more well-defined” external growth strategy, stronger local market fundamentals, and growing joint venture mix, contends the firm.
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