Citi analysts are valuing Ramsay Health Care on the basis of FY24 forecasts as this is considered the first ‘normal’ period for the private hospital operator since the disruptions from covid.
Apart from remaining confident the projected normalisation will occur, Citi also expresses concern about Ramsay’s financial discipline (or the lack thereof) when opting for acquisitions.
It is this concern, suggest the analysts, that has been weighing down on the share price to date. Buy rating retained while the target price loses -$1 to $74.00.
Sector: Health Care Equipment & Services.
Target price is $74.00.Current Price is $64.45. Difference: $9.55 – (brackets indicate current price is over target). If RHC meets the Citi target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
