Leerink downgraded R1 RCM to Market Perform from Outperform with a price target of $14.30, down from $17. The firm thinks that TowerBrook and Clayton, Dubilier & Rice’s acquisition of R1 RCM for $8.9B comes at a reasonable valuation. It should mark the end of the 157-day saga that New Mountain Capital kicked off with its unsolicited takeout offer back in February, Leerink adds. Given TowerBrook and CD&R’s 36% ownership of shares, the firm sees this as the likely final bid for R1 and is not expecting New Mountain to come over the top with a new bid.
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