Tag: ASX:RHC

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%.

Buy Ramsay Health Care within the $61 – $65 price range.

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

We see value emerging and suggest accumulating within the $50 – $52 price range.

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

We see Ramsay Healthcare as a  defensive position within the current volatile market conditions.

Buying support should develop within the $52 to $56 price band.

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 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.

Ramsay Health Care is under Algo Engine sell conditions and we may see further weakness in the share price down to the $62 level.

FY20 earnings outlook suggests 2 – 4% EPS growth supporting a forward dividend yield of 2.3%.

Ramsay Health Care was one of our picks heading  into the earnings result on Thursday. The result came in ahead of market consensus.

RHC delivered a good 1H19 result which demonstrated the Australian business continues to achieve decent revenue growth.

We view the stock  price as full value now at $65

Shares of RHC have been edging higher as investors respond favorably to their recent AGM on Tuesday.

With respect to their Capio AB acquisition, management continues to target overall positive core growth of up to 2% in FY 2019.

With the share price at  22X present earnings, we would have liked to seen a higher rate of expected core growth to sustain a rally from current levels.

RHC remains under an ALGO sell signal but we expect the $51.00 level to show solid support and an ALGO buy signal in the medium-term.

Ramsay Health