Navigant Focuses On Restructuring Initiatives, Risks Remain
Zacks Investment Research | Oct 09, 2017 09:52PM ET
On Oct 10, we issued an updated research report on management services provider, Navigant Consulting Inc. (NYSE:NCI) .
Growth Drivers
Opportunities associated with healthcare reform continue to drive demand for Navigant as the industry seeks to improve profitability and address increasing regulatory pressures for compliance. Demand for data analytics in healthcare across all markets is also growing as the Affordable Care Act and new technologies have given access to new data. The company is presently developing data analytic tools across multiple groups to meet the growing demand for technology-enabled solutions that can help clients address many market challenges.
Management is also taking steps to restructure the business in order to better align capacity with demand. Utilizing its strong cash flow generation capacity, the company continues to return capital to its shareholders while investing heavily in technology, new capabilities and client channels. At the same time, Navigant is focusing on corporate development efforts to build a robust pipeline of investment opportunities, which is in line with its growth strategy.
Also, the company aims to expand through solid inorganic strategies. Navigant acquired Cymetrix Corporation, a revenue cycle management firm. The firm is expected to add significant depth to Navigant’s subsidiary Alleviant, LLC, which presently provides physician revenue cycle outsourcing services. The acquisition of RevenueMed will further strengthen its position as the leading provider of end-to-end revenue cycle management services and expand its platform to include global offshore capabilities 24 hours a day.
Headwinds
Navigant has underperformed the Zacks Investment Research
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