Ramsay Health Care's share weakness may see investor focus swing from the stalled KKR-talks and M&A speculation back to the fundamental, underlying business, says Morgans analysts in a note. It says the company is still contending with challenging trading conditions, inflationary pressures and workforce issues providing headwinds to a full recovery in productivity. "That said, we view FY 2022 as the nadir in earnings, with Covid-related headwinds slowly subsiding, supporting the eventual return of more normalized activity in FY 2024 and beyond," Morgans say. It forecasts underlying earnings growth of around 20% per annum over the next three years.
(END) Dow Jones Newswires