RHC – Citi rates the stock as Buy

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The board of Capio has unanimously recommended the RGdS offer of SEK58 per share. Capio has consequently cancelled the planned sale of the French division to a third party and RGdS has lowered the minimum acceptance condition to 75% from 90%.

The bid values the Capio equity at EUR783m. Citi observes the Capio assets provide Ramsay Health Care entry to the Scandinavian and German markets as well as opportunities for further synergies in France.

Citi maintains a Buy rating and $62 target.

Sector: Health Care Equipment & Services.

Target price is $62.00.Current Price is $53.66. Difference: $8.34 – (brackets indicate current price is over target). If RHC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).


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