Ramsay Healthcare

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.