R1 RCM downgraded to Equal Weight from Overweight at Stephens

Stephens analyst Jeff Garro downgraded R1 RCM to Equal Weight from Overweight with a price target of $14.30, down from $16. RCM announced a definitive merger agreement for the Towerbrook-Ascension JV in tandem with Clayton, Dubilier & Rice to buy RCM for $8.9B in an all-cash transaction, the analyst tells investors in a research note. The firm, which expects the deal to close in-line with expectations by calendar year-end, says the proposed transaction marks the likely conclusion of the lengthy bid and evaluation process, which was initially sparked by New Mountain Capital’s offer of $13.75 a share in February.