RHC – Credit Suisse rates the stock as Upgrade to Neutral from Underperform

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Since the beginning of August the stock has underperformed the healthcare sector by -11% and the broader market by -9%, Credit Suisse observes.

While maintaining a negative stance on the Australian private hospital industry and assessing margins & returns to be diluted by recent offshore acquisitions, the broker suggests the current price reflects this and there is no longer a catalyst for a de-rating.

Rating is upgraded to Neutral from Underperform. Target is steady at $65.

Sector: Health Care Equipment & Services.

Target price is $65.00.Current Price is $64.74. Difference: $0.26 – (brackets indicate current price is over target). If RHC meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

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