Truist reiterates Buy on RadNet stock after Q2 beat, guidance raise

Truist Securities has maintained a Buy rating and $90.00 price target on RadNet (RDNT) following its strong second-quarter performance. The company's stock has climbed 8.4% in the past week, currently trading at $77.70 with a market capitalization of $5.98 billion. RadNet's Q2 revenue of $622.7 million surpassed Truist's estimate of $618.8 million and the consensus of $610.9 million.

The Imaging Center Segment exceeded expectations, while Digital Health results aligned with projections. Adjusted EBITDA rose to $99.7 million, beating Truist's forecast of $92.4 million and the consensus of $91.4 million. Margins improved to 16.0%, about 110 basis points higher than expected, primarily due to increased margins in the Imaging Center Segment.

RadNet raised its full-year guidance, now projecting revenue between $2.505 billion and $2.565 billion, up from the prior range of $2.490 billion to $2.550 billion. The Imaging Center Segment's performance was the main driver of the guidance increase, while Digital Health guidance remained unchanged. Truist cited continued strong growth in advanced procedures as the reason behind the impressive results.