First half results were broadly in line with UBS estimates. Average occupancy declined to 90.4%.
For the first time, Regis Healthcare has noted that consumers on home care waiting lists are delaying entry into residential aged care, anticipating increased availability of packages. UBS does not expect this will normalise in the near term.
The broker retains a Neutral rating. Target is reduced to $2.10 from $2.80.
Sector: Health Care Equipment & Services.
Target price is $2.10.Current Price is $2.00. Difference: $0.10 – (brackets indicate current price is over target). If REG meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
