With reference to M&A generally and multiples relating to the Japara Healthacare ((JHC)) takeover offer in particular, Morgans lifts the rating for Regis Healthcare to Add from Hold. The target price increases to $2.23 from $2.03.
The broker believes the increased level of M&A activity in the sector is likely to increase further, and a successful conclusion to the Japara Healthcare bid will likely attract more investor attention.
Sector: Health Care Equipment & Services.
Target price is $2.23.Current Price is $2.06. Difference: $0.17 – (brackets indicate current price is over target). If REG meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
