Recent AGM commentary pointing to difficult conditions in the last quarter, leads Morgans to lower FY21 forecasts on lower occupancy estimates.
After recent takeover activity in the sector, the broker notes two changes to substantial shareholders. Former founder and CEO Andrew Sudholz has increased ownership to 8.1% (was 6.0%) and Aurrum Holdings has become a substantial holder at 6.3%.
Morgans removes a -15% valuation discount and places a 15% premium to reflect potential corporate activity and increases the target price to $0.74 from $0.52.
The Hold rating is unchanged.
Sector: Health Care Equipment & Services.
Target price is $0.74.Current Price is $0.79. Difference: ($0.05) – (brackets indicate current price is over target). If JHC meets the Morgans target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).