Post the additional funding announced by the Australian government in response to the report by the Royal Commission into Aged Care Quality and Safety, Macquarie has updated its forecasts.
The broker sees the additional funding as positive for the residential aged care sector. For Regis Resources, the broker notes operating income changes are in line with the broker’s previous analysis.
Also, Macquarie thinks additional funding will lead to better cash flows.
Led by an improved funding outlook, Macquarie moves to Outperform from Neutral with the target rising to $2.95 from $2.1.
Sector: Health Care Equipment & Services.
Target price is $2.95.Current Price is $2.20. Difference: $0.75 – (brackets indicate current price is over target). If REG meets the Macquarie target it will return approximately 25% (excluding dividends, fees and charges – negative figures indicate an expected loss).