While Ramsay Health Care’s 3Q update highlighted to Morgans a continuation of challenging conditions across all geographies, the indicative $88 offer from KKR is front of mind. The current offer is offer thought to be opportunistic and likely to be revised or pulled.
The company still faces numerous headwinds including staff shortages, surgical restrictions, cancellations, inflationary pressures and covid-related costs, notes the analyst.
The broker maintains its $80 target price at a -10% discount to the takeover bid though materially lowers FY22-24 earnings forecasts. The Hold rating is unchanged.
Sector: Health Care Equipment & Services.
Target price is $80.00.Current Price is $81.11. Difference: ($1.11) – (brackets indicate current price is over target). If RHC meets the Morgans target it will return approximately -1% (excluding dividends, fees and charges – negative figures indicate an expected loss).
