Ramsay Health Care: Activity up; Asian JV sold; going digital for the future
About the author:
- Author name:
- By Dr Derek Jellinek
- Job title:
- Senior Analyst
- Date posted:
- 15 November 2023, 7:00 AM
- Sectors Covered:
- Ramsay Health Care (ASX:RHC) investor day and site tour emphasised Australian operations and its digital ambitions, while the recent Asian JV sale helps jump-start B/S repair.
- Promisingly, activity in Australia is trending favourably across most specialties, with improving volumes expected to continue to drive top line growth.
- While higher volumes and efficiency gains should support operating leverage, it is held in check over the near term as management embarks on a 5-year strategic plan to build the best-in-class, digital-enabled integrative health care system.
- While we view the building blocks and clear approach to this digital transformation as reasonable, it is a complex and ambitious plan, so difficult at this early stage to gauge how implementation and buy-in will play out and what the returns will be.
- We adjust FY24-26 earnings, with our price target decreasing to (login to view). Add.
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