Ramsay Healthcare

Ramsay Health Care

RHC delivered 8% revenue growth in FY20, with a strong 1H more than offsetting the 4% decline experienced in 2H.

Australia suffered the greatest contraction in 2H, down 8% on the same time last year. UK revenue growth remained solid, up almost 5%.

Based on normalization in FY22 earnings, we have the stock trading on a forward yield of 2.2%.

Ramsay Health Care – Rallies 10%

Ramsay Health Care is faced with flat earnings in 2020 and only moderate growth FY21. For patient long-term investors, there’s an income opportunity with defensive low levels of growth.

We see buying support increasing near the $60 level.

The above post is from early August when RHC was trading in the $60 – $62 price range. The stock is now approaching $70 and short-term traders can consider taking profit between $68 – $70.

Ramsay Healthcare – Buy Signal

Ramsay Health Care is under Algo Engine buy conditions and has now been added into the ASX 100 model portfolio.

We see price support developing near $62, following Ramsay Health Care advising that Paul Ramsay Holdings has completed the underwritten block trade sale of 22m shares in the Company to institutional investors at $61.80 per share.

Buy RHC at $62.00

Ramsay Healthcare – Valuation Review

Ramsay Health Care is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

RHC trades on 21x forward earnings, dividend yield of 2.4% and underlying EPS growth into FY20 of 2 – 4 %.  Forecast FY20 revenue $13bn, EBIT $1.2bn, EPS $3.00 & DPS $1.55.

In a low rate environment, we see the new trading range for Ramsay within the $65 – $70 band.

We see buying support building at the $64 price level.