RHC surged ~10% after the private hospital operator delivered a better than expected 1H result in February Here. We liked the comments from Chief executive Natalie Davis saying the turnaround strategy for Australia’s largest private hospital operator is gaining traction, pointing to improved admissions, better utilisation of operating theatres, increased market share, and growth in both revenue and margins.
Ramsay’s domestic performance likely marks an inflection point after years of post-pandemic stagnation, with early margin improvement signalling that management’s operational focus is beginning to drive earnings momentum despite ongoing challenges.
- The stock has rallied 30% from its 2025 low and we still see reasonable value in this turnaround story, although it’s unlikely to enjoy the same tailwind from a broader “risk-on” rally as some other areas of the market.
MM is cautiously bullish toward RHC around $39
Add To Hit List
