The outlook for private hospital volumes and prices remains the key driver of Ramsay Health Care, UBS assesses. Australia represents around 78% of the FY20 earnings (EBIT) forecast.
Ongoing deterioration in private health insurance participation will put increased pressure on the public system and ultimately lead to sustained volume growth from private operators, in the broker’s view.
Neutral rating and $68.40 target maintained.
Sector: Health Care Equipment & Services.
Target price is $68.40.Current Price is $65.20. Difference: $3.20 – (brackets indicate current price is over target). If RHC meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
