R1 RCM
While probably the least known company of the new additions to the Franchise List, this stock offers big upside potential. R1 RCM Inc. (NASDAQ: RCM) provides technology-driven solutions that transform the patient experience and financial performance of hospitals, health systems and medical groups. The company offers end-to-end revenue cycle management (RCM) services, which address the spectrum of revenue cycle challenges faced by health care providers.
R1 RCM also provides modular services, including physician advisory services, which assist health care organizations in complying with payer requirements regarding whether to classify a hospital visit as an in-patient or an out-patient observation case for billing purposes; practice management services that offer administrative and operational support for patient care and outsource non-core functions; revenue integrity solutions, including charge capture, charge description master maintenance and pricing services; coding management services, such as business intelligence and analysis, human capital management, accountability framework and quality management programs; patient experience; and business office services. In addition, the company offers software-as-a-service based scheduling and patient access solutions.
The Jefferies target price of $13 is lower than the $14.57 consensus target. Wednesday’s closing price was $11.05 a share.
SVB Financial
This boutique financial services firm may be off many investors’ radar screens. SVB Financial Group (NASDAQ: SIVB) is a diversified financial services company offering various banking and financial products and services. It operates through the following four segments.
The Global Commercial Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance and other financial products and services. This segment also offers traditional term and equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue and acquisition finance facilities, mezzanine lending, corporate working capital facilities and credit card programs; treasury management products and services; business and analysis checking, money market, multi-currency, in-country bank and sweep accounts; receivables services, which include merchant services, remote capture, lockbox and fraud control services; wire transfer and automated clearing house payment services; and business bill pay, credit and debit cards, account analysis and disbursement services. In addition, it offers foreign exchange and trade finance products and services; letters of credit; and investment services and solutions.
The SVB Private Bank segment offers mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit and other secured and unsecured lending products; planning-based financial strategies, wealth management, family office, financial planning, tax planning and trust services; and real estate secured loans.
The SVB Capital segment provides venture capital investment services, while the SVB Securities segment provides investment banking services, as well as products and services, including capital raising, merger and acquisition advisory, equity research, and sales and trading.
The $288 Jefferies price objective compares with a consensus target of $293.33 for SVB Financial stock, which closed at $217.35 on Wednesday.
Note that these six companies were removed from the Franchise List: Amazon, Caesars Entertainment, Dollar General, Linds, Prologis and Webster Financial.
After a horrific 2022, most of the eight new stocks ushered into the Franchise Picks in a massive portfolio change (the size of which we have rarely seen) have been marked down to levels that offer growth investors very solid entry points and outstanding upside potential. While the first half of 2023 could still prove to be bumpy, things should smooth out by the summer, providing a nice tailwind for the second half of the year for these top ideas from Jefferies.
Originally published at 24/7 Wall St.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
