R1 RCM downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded R1 RCM to Equal Weight from Overweight with a price target of $14.30, down from $17. After a “solid Q2,” the firm continues to think the company is well positioned to capture secular growth in revenue cycle management and drive margin expansion, but moves to the sidelines following the announcement that RCM’s largest shareholder, TowerBrook, and CD&R have offered to buy the company for an enterprise value of $8.9B.