Ramsay Health Care: A slow recovery, but long-term fundamentals intact
About the author:
- Author name:
- By Dr Derek Jellinek
- Job title:
- Senior Analyst
- Date posted:
- 25 August 2023, 8:30 AM
- Sectors Covered:
- Ramsay Health Care's (ASX:RHC) FY23 results were mixed, with revenue gains across all regions on increased surgical activity, although margins and profit lagged.
- Earnings improved in Australia, UK acute hospitals and Asia, but were partially offset by ongoing staff shortages and inflationary pressures in EU and Elysium.
- While inflationary headwinds, coupled with digital/data investments and higher funding costs, hold back a full recovery in near term op leverage, growing volumes and numerous performance initiatives point to an improving earnings trajectory.
- We adjust FY24-25 earnings, with our price target decreasing to (login to view). Add.
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