Ramsay Healthcare (RHC)

Submitted by Craig Strzelecki on 9 July, 2007 - 09:48

Ramsay Healthcare (RHC) have a retained outperform recommendation and a 12 month share price target of $12.20 from Australian share market analyst Macquarie Research Equities. Ramsay Healchare is one of the analysts' top picks in the heath-care space. The stock has been under-promising and over-delivering to continue in the analysts' view. Guidance has been maintained at 15–20% growth in 'core' EPS for the full year, with the first half up 21% by management definition. They expect that the company's track record of under-promising and over-delivering to continue. Key drivers moving forward include reduced working capital demand, early returns from brownfield expansion, and the delayed pricing coverage of higher nursing costs in Queensland. Near-term outperformance will be based on growing confidence in current management to execute on the growth opportunities available – such as in hospital expansion, acquisition and the development of the company’s potential in diagnostics and other complementary services. The stock analysts back management to deliver.

Ramsay Health Care Limited is listed on the Australian Stock Exchange (ASX) under stock code RHC. You can view their investor website here. RHC was listed on the ASX on 24 September, 1997. The company owns and operates private hospitals. Ramsay Health Care currently has a portfolio of 69 private hospitals and day care facilities across Australia and Indonesia. With over 7,000 beds, Ramsay Health Care employs almost 20,000 people. Ian Patrick Grier is the Managing Director or Ramsay Health Care. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade RHC. Check your charts and good luck with your share trading!