Ramsay Health Care's 1H results beat Morgans expectations and FY24 guidance was maintained. Management noted the margin recovery continues to be "slowed" by ongoing cost pressures and an increase in digital and data opex.

The broker highlights earnings in the UK and domestically improved, but were offset by ongoing inflationary pressures in the EU. Revenue increased in Australia, the UK and the EU by 6%, 29% and 17%, respectively.

Management noted the Elysium business continues to improve.

The target rises by $1.00 to $60.76 and the Add rating is maintained.

Sector: Health Care Equipment & Services.

Target price is $60.76.Current Price is $54.91. Difference: $5.85 - (brackets indicate current price is over target). If RHC meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena