Ramsay Health Care: A slow recovery, but long-term fundamentals intact

About the author:

Dr Derek Jellinek
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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