Ramsay Health Care
RHC is having steady revenues and no major negative news. Is it a good buy at $46-$47? Can we expect some pullback from the current lows and higher levels in next 8-12 months or so? Thank you.
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Answer
Hi Danny,
We hold RHC in our Active Growth Portfolio and unfortunately its been our worst holding of 2024, with its French holding in Ramsay Générale de Sante (GDS FP) weighing on performance. The stock has fallen -11% year-to-date, trading below its GFC lows in recent weeks. We have decided to hold our RHC position on valuation grounds & a lack of ‘screaming’ alternatives in the healthcare space, but at this stage we aren’t consider adding to the position.
We are not that bullish given the financial issues facing unlisted Healthscope as they work to renegotiate their pile of debt, implying the vibe is not great for a potential debt funded buy out of RHC.
