The broker has looked at the SARS event to provide a guide to when elective surgery may be able to start up again, but the problem is SARS was all over quite quickly and thus provides little precedent for Covid-19. Restart could only occur once virus risk is deemed manageable, there is enough protective clothing and enough health care workers on hand to wear it, the broker suggests.
As to when that might happen is unclear. The broker currently assumes volume normalisation from FY22. Neutral and $60 target retained for Ramsay Health Care.
Sector: Health Care Equipment & Services.
Target price is $60.00.Current Price is $65.89. Difference: ($5.89) – (brackets indicate current price is over target). If RHC meets the UBS target it will return approximately -10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
