UBS assesses Regis Healthcare continues to generate the best returns in the aged care sector, with the highest quality portfolio of assets.
The broker expects that after the recommendations of the Royal Commission are tabled, with an extension to November 12 2020 now approved, the government will move on longer-term sector reforms.
However, in the absence of any one-off packages it is unlikely the sector will obtain funding relief ahead of the FY22 budget.
The broker maintains a Buy rating and $3.10 target.
Sector: Health Care Equipment & Services.
Target price is $3.10.Current Price is $2.68. Difference: $0.42 – (brackets indicate current price is over target). If REG meets the UBS target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).