Healthscope (HSP) Shares Tip

Healthscope (HSP) have a 12 month share price target of $6.05 and an Outperform stock recommendation from shares analyst Macquarie Research Equities (MRE). MRE also note that current political and economic trends would generally point toward sustained industry health for the foreseeable future. The stock has drifted 6 cents lower despite announcing that they will build a new 142 bed hospital in North Western Sydney at a cost of $52m. Macquarie Research Equities (MRE) estimate that the hospital will not make a contribution to earnings until FY12 even under optimistic guidelines. MRE believe this announcement is more relevant for the implications of the industry dynamics. Greenfield hospital developments have been rare since the late 1990’s, when a number of projects almost crippled hospital groups. MRE highlight Westmead Private hospital which took Alpha Healthcare to the brink of collapse. This however was later acquired by Ramsay (RHC). The most recent Greenfield project of size was the new Epworth Hospital in Melbourne which is also struggling under the weight of its fixed costs. MRE have an Outperform recommendation on HSP.

Healthscope Limited is listed on the Australian Stock Exchange (ASX) under stock code HSP. You can view their investor website here. HSP was listed on the ASX on 4 May, 1994. Helthscope is involved in the ownership and operation of hospitals. Kevin McCann is the Chairman of Healthscope and Bruce Dixon the Managing Director. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade HSP. Check your charts and good luck with your share trading!