Tag: ASX:RHC

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

Ramsay Healthcare remains in a Algo Engine “sell” condition, however, after the share price correction from $85 to $52, we now see value beginning to emerge.

Shareholders in Swedish hospitals group Capio have given the approval to RHC’s 51% owned French subsidiary A$1.3bn takeover offer, to proceed.

With all conditions now satisfied, the deal’s expected settlement will be early next month.

Watch for RHC to turn positive and generate an Algo Engine buy signal in the coming months.

RHC

Shares of Ramsay Heath care are down over 2% to $53.30 in early trade.

Last Friday, the private hospital group announced an unsolicited offer for almost a $1 billion to take over Capio AB, a European healthcare company.

Over the weekend, the Capio board unanimously rejected the deal.

Over the last 2 months, the RHC share price has dropped over 16%. Most of this negative sentiment is based on the company’s admission that earnings growth will contract from 8% to 5% over the next year.

At current prices, we see RHC on a 2.9% dividend yield. As such, we consider the stock near fair value and would look to acquire it at lower levels.

Ramsay Health Care