Ramsay Health Care’s result missed Morgans, materially impacted by covid and higher costs, sending overall profit and cash flow backwards.
Further covid waves resulting in isolation orders, lockdowns, surgical restrictions and cancellations varied across geographies, the broker notes, pulling Asia-Pacific and UK down, while Europe was up modestly on supportive government funding and acquisitions.
As covid impacts ease, Ramsay is well-placed, but it will take time to make a full recovery, the broker suggests. Work force issues and higher costs will add additional headwinds.
Target rises to $67.69 from $65.10, Hold retained.
Sector: Health Care Equipment & Services.
Target price is $67.69.Current Price is $65.92. Difference: $1.77 – (brackets indicate current price is over target). If RHC meets the Morgans target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
