Ramsay shares rise as NHS backlog boosts UK business
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The news: Ramsay Health Care rose in morning trade on the ASX after Jarden analysts said they expected a persistent admissions backlog in the UK to boost earnings over the next three financial years.
The numbers: Ramsay shares were up 1.8% to $51.69 by midday AEST. Jarden maintained its 'neutral' rating for the stock but increased its target price from $63.43 to $64.30.
Over the last 12 months the stock has plummeted 15.88%.
The analysts increased Ramsay's earnings per share forecasts by 1.4% in FY24, 1.4% in FY25 and 1.1% in FY26, as the NHS backlog in the UK remained at "extraordinary levels", with around 7.5 million patients waiting for treatment.
The context: Jarden analysts said the UK's National Health Service (NHS) was increasingly turning to the private sector to provide additional capacity to help process its elevated surgical backlog.
They noted that Ramsay UK has traditionally positioned itself to take a "disproportionate amount" of NHS volumes and of the private providers "appears to be best positioned to receive the lion share of NHS work".
The source: Jarden research
