Banc of America Ups Radiation Therapy Services to Neutral
Banc of America upgraded Radiation Therapy Services (RTSX) to neutral from sell, citing the stock's sharp pullback in value on Friday.
Analyst Gary Taylor says share prices now appropriately discount potential reimbursement risks to the radiation therapy service provider's business. He notes that his target remains $22 because he assumes about 40% in cuts to the company's reimbursement; he notes evidence that the Centers for Medicare & Medicaid (CMS) appear likely to cut reimbursement by a similar amount. He believes that ultimately Radiation Therapy Services's business will still be viable.