Public hospital elective surgery data for the four major states indicates, in aggregate, the number of people waiting surgery increased 9% in the March quarter.
UBS suspects that delays because of the pandemic are likely to result in additional pressures on the waiting lists in the June quarter.
Still, Ramsay Health Care is likely to benefit from local “spot” contracts and more formalised outsourcing of state work.
While not equivalent to private insurance funded admissions this is still likely to add to operating profit, the broker adds. Neutral rating and $71.20 target maintained.
Sector: Health Care Equipment & Services.
Target price is $71.20.Current Price is $66.98. Difference: $4.22 – (brackets indicate current price is over target). If RHC meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).