Credit Suisse downgrades to Underperform from Neutral, envisaging the recent re-rating reflects the expectations for favourable outcomes from rent regulation.
The potential for an acquisition of size in the absence of an equity raising seems limited to the broker, based on balance sheet constraints.
Credit Suisse reduces the target to $20.10 from $21.75.
Sector: Health Care Equipment & Services.
Target price is $20.10.Current Price is $22.40. Difference: ($2.30) – (brackets indicate current price is over target). If SHL meets the Credit Suisse target it will return approximately -11% (excluding dividends, fees and charges – negative figures indicate an expected loss).