Truist maintains Buy on RadNet stock, price target steady at $74

Published 22/05/2025, 14:16
Truist maintains Buy on RadNet stock, price target steady at $74

On Thursday, Truist Securities expressed a continued positive outlook on RadNet (NASDAQ:RDNT), maintaining a Buy rating and a price target of $74.00. This aligns with the broader analyst consensus, as InvestingPro data shows analyst targets ranging from $60 to $80, with a strong buy recommendation. Following recent meetings with management, the firm’s analysts reported strong performance in the company’s core imaging center operations and potential growth in the digital health sector.

RadNet, a provider of diagnostic imaging services, has shown resilience with solid core growth, despite weather-related challenges earlier in the first quarter. The company’s revenue grew by approximately 13% in the last twelve months, reaching $1.87 billion, with a healthy current ratio of 2.01. Analysts at Truist Securities anticipate ongoing benefits from the growth of advanced medical procedures. They also forecast an expanding role for DeepHealth, RadNet’s artificial intelligence initiative, as the company progresses through 2025 and into 2026.

The recent acquisition of iCAD, a provider of advanced cancer detection and therapy solutions, is seen as a strategic move that complements RadNet’s existing services. Truist Securities believes that this deal, along with RadNet’s financial flexibility, will provide the company with ample resources to continue investing and strengthening its core business operations.

The firm’s analysts have also adjusted their expectations for RadNet’s adjusted EBITDA in 2025, reinforcing their Buy recommendation and $74 price target. This endorsement reflects confidence in the company’s strategic direction and its ability to capitalize on opportunities within the digital health space.

In other recent news, RadNet Inc. reported its first-quarter 2025 earnings, showcasing a revenue increase to $471.4 million, surpassing forecasts of $446.21 million. Despite the revenue growth, the company experienced an earnings per share (EPS) shortfall, reporting -$0.5 compared to the forecasted -$0.108. The company’s adjusted EBITDA for the quarter was $46.4 million, slightly higher than some estimates, but still reflecting a year-over-year decline due to external factors like adverse weather. RadNet has raised its 2025 revenue and adjusted EBITDA guidance, citing strong operational performance and strategic initiatives. Raymond (NSE:RYMD) James responded to these results by maintaining a Strong Buy rating on RadNet shares and raising the price target to $66. The firm pointed out that RadNet’s revenue and adjusted EBITDA exceeded expectations, prompting the target adjustment. Additionally, RadNet has announced the acquisition of iCAD Inc (NASDAQ:ICAD)., a move expected to enhance its AI capabilities in breast health solutions. These developments indicate that the company is focusing on expanding its digital health segment and improving operational efficiencies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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