Private hospital operator RHC closed 4% lower yesterday after its earnings disappointed the market although the weakness was far worse around the open. The FY22 trading update showed NPAT down a meaningful 39.5% to $58.1m with the lack of elective surgeries through COVID understandably the main issue, for us the 2 questions the result poses are is the stock cheap enough around $70 and what catalysts could lift the shares away from this area where it’s been for around 6-years.
We like the stock / company but see no compelling reason to buy right here, right now.
MM is neutral RHC
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