Hill-Rom (HRC) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Hill-Rom (NYSE:HRC) from a hold rating to a buy rating in a research note released on Wednesday. Zacks Investment Research currently has $101.00 price objective on the medical technology company’s stock.

According to Zacks, “Hill-Rom exited the fiscal 2018 on a strong note with fourth-quarter earnings and revenues beating the respective Zacks Consensus Estimate. Adjusted earnings increased 23% in the quarter, the 13th consecutive quarter of double-digit growth. The company saw a solid increase in revenues on robust domestic growth, driven by a sturdy performance in Patient Support Systems and Front Line Care. The company is currently focusing on product innovation. For the full year, it has achieved more than $300 million as new product revenues. In 2019, the company expects to generate more than $400 million in new product revenue, exceeding its 2020 objective one year in advance. Over the past three months, Hill-Rom outperformed tits industry. On the flip side, international revenues declined with a dip in sales in Asia-Pacific. Also, foreign exchange and a tough competitive landscape remain headwinds.”

HRC has been the topic of several other reports. ValuEngine upgraded Hill-Rom from a hold rating to a buy rating in a research report on Tuesday, July 31st. Northcoast Research restated a buy rating and set a $104.00 price target on shares of Hill-Rom in a research report on Tuesday, July 31st. Raymond James raised their price target on Hill-Rom from $100.00 to $105.00 and gave the stock an outperform rating in a research report on Monday, November 5th. Morgan Stanley raised their price target on Hill-Rom from $95.00 to $100.00 and gave the stock an equal weight rating in a research report on Thursday, October 11th. Finally, Barclays began coverage on Hill-Rom in a research report on Monday, October 15th. They set an equal weight rating and a $95.00 price target on the stock. Three equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The company has an average rating of Buy and a consensus target price of $100.33.

HRC opened at $93.45 on Wednesday. The company has a debt-to-equity ratio of 1.11, a quick ratio of 1.30 and a current ratio of 1.74. Hill-Rom has a 1 year low of $78.16 and a 1 year high of $98.96. The company has a market cap of $6.19 billion, a P/E ratio of 19.67, a P/E/G ratio of 1.28 and a beta of 0.90.

Hill-Rom (NYSE:HRC) last posted its quarterly earnings results on Friday, November 2nd. The medical technology company reported $1.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.51 by $0.12. Hill-Rom had a return on equity of 21.10% and a net margin of 8.86%. The business had revenue of $759.20 million for the quarter, compared to analyst estimates of $750.90 million. During the same period last year, the company earned $1.32 EPS. Hill-Rom’s revenue for the quarter was up 2.8% compared to the same quarter last year. Research analysts forecast that Hill-Rom will post 5.13 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, December 31st. Shareholders of record on Friday, December 14th will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 0.86%. The ex-dividend date is Thursday, December 13th. Hill-Rom’s dividend payout ratio (DPR) is currently 16.84%.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Flagship Harbor Advisors LLC purchased a new stake in Hill-Rom in the 2nd quarter worth approximately $173,000. Quantbot Technologies LP lifted its holdings in Hill-Rom by 270.2% in the 3rd quarter. Quantbot Technologies LP now owns 2,051 shares of the medical technology company’s stock worth $193,000 after buying an additional 1,497 shares during the period. First Light Asset Management LLC purchased a new stake in Hill-Rom in the 3rd quarter worth approximately $202,000. CIBC Asset Management Inc purchased a new stake in Hill-Rom in the 2nd quarter worth approximately $203,000. Finally, CAPROCK Group Inc. purchased a new stake in Hill-Rom in the 3rd quarter worth approximately $211,000. Institutional investors and hedge funds own 79.75% of the company’s stock.

About Hill-Rom

Hill-Rom Holdings, Inc operates as a medical technology company worldwide. It provides medical surgical beds, intensive care unit beds, bariatric patient beds, lifts and other devices, non-invasive therapeutic products and surfaces, and communications technologies and software solutions; and medical equipment management services, as well as sells equipment service contracts for its capital equipment.

Recommended Story: Consumer behavior in bull markets

Get a free copy of the Zacks research report on Hill-Rom (HRC)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Hill-Rom (NYSE:HRC)

Receive News & Ratings for Hill-Rom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hill-Rom and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply