The FY20 update was in line with UBS expectations, with a non-cash impairment charge of $124-148m to be taken in the results.
Spot occupancy has improved to 92.7% as of June 30 as restrictions are eased.
While the company has shown strong execution, UBS expects occupancy pressures will build again as coronavirus cases re-escalate within Victoria, and potentially other states.
Neutral rating and $1.55 target maintained.
Sector: Health Care Equipment & Services.
Target price is $1.55.Current Price is $1.44. Difference: $0.11 – (brackets indicate current price is over target). If EHE meets the UBS target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
