UBS expects operating earnings in the first half of $971m, down -8%. With elective surgery returning to pre-pandemic levels in Australia the outlook for earnings appears more favourable.
Yet this is contingent on the containment of the pandemic and a tempering of the costs associated with delivering care.
While this material, the broker notes recent increases in coronavirus cases in the UK/France signal a longer time period to return to normal levels in those locations. The broker retains a Neutral rating and reduces the target to $69.90 from $71.20.
Sector: Health Care Equipment & Services.
Target price is $69.90.Current Price is $64.52. Difference: $5.38 – (brackets indicate current price is over target). If RHC meets the UBS target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
