RBC Capital analysts provided their views on R1 RCM Inc. (NASDAQ:RCM) following the company’s 2022 guidance update.

The analysts said they are incrementally more positive following the update, and highlighted the following three items: (1) work on the $10 billion contract continues with management now expecting it to be completed potentially within the next couple of weeks, (2) the company's revised 2022 EBITDA target of $470-480 million compares favorably to the analyst's $465-475 million estimate, and (3) while the Q2 guide is approximately $4 million below the Street, it does embed ramping commercial and operational costs as the company invests ahead of new anticipated business.

The analysts said the company remained their top pick and reiterated their outperform rating and $35 price target.