RadNet upgraded to Strong Buy at Raymond James as valuation ‘more compelling’

Raymond James upgraded RadNet (RDNT) to Strong Buy from Outperform with a price target of $65, down from $85. The valuation is “more compelling,” with the AI division’s implied valuation at roughly $615M, or 5.5x revenue, creating a better entry point into the stock, the analyst tells investors in a research note. Raymond James continues to like the stock as RadNet is a leader in the outpatient radiology space with optionality from the digital health business and unmodeled M&A as the company sits on more than $700M of cash on the balance sheet.