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Ramsay Health Care Ltd (RHC)

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Question asked 07/06/2025

Ramsay Health Care Ltd (RHC)

Hi James and Team (thanks as always for the great coverage and Q&A opportunity) I am wondering whether you could revisit your thoughts on Ramsay Health Care. I notice that you sold your position around $57 (well done-I have hung on). With Healthscope going into receivership I am wondering whether this may, in your opinion, clear the decks for a purchaser in the future to take another tilt at RHC. The share price appears to be at last commencing a recovery. Could you please comment on whether the circa $57 /share mark is still what you would consider selling in todays market or do you see the potential in the nearish future for another possible takeover bid? Many thanks Don

Answer

Hi Don,

Ramsay have enjoyed a couple of “shots in the arm” in recent weeks:

The stock rose in April after receiving expansion plan approval report in NSW for two large scale applications.
Some analysts now believe that their problematic French Sante business is set to improve earnings in the 4Q of FY25.

In terms of private hospital operator Healthscope’s collapse, its a double-edged sword:

It illustrates that private hospitals are doing it tough at the moment although the RHC share price shows this clearly on its own.
RHC who already operate 73 hospitals in Australia might be in a good position to pick the proverbial eyes out of Healthscope’s 37 sites.

We do like RHC around $38 with more ticks in the positive, rather than negative side of the ledger. We think it has a high chance of trading higher from current levels.

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Ramsay Health Care Ltd (RHC)

LAST UPDATED 04/06/2025 12:52

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