Morgan Keegan Reiterates Outperform on RadNet (RDNT)

Morgan Keegan is out with a research report this morning, where it reiterates its RadNet Inc. RDNT; it has a $3.00 price target on the stock. The MK analysts cited the company’s recent earnings report, which was slightly below estimates; the analyst are thus lowering their 2010 adjusted EBITDA estimate from $106.9 million to $105.2 million, below management's $107-$111 million guidance. They are also lowering the 2011 estimate from $122 million to $119 million. The analysts believe that imaging services remains sensitive to the economy, though RDNT’s focus on local market dominance keeps them somewhat insulated. Nevertheless, the MK analysts expect “continued pressure on internal growth until the economy recovers and patient volumes return to more normal levels.”