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Primary Health Care Limited shares given “accumulate” rating











The AFR is reporting Morningstar has an “accumulate” rating for medical business Primary Health Care Limited (ASX: PRY), saying fair value for the shares are $5.00.

“The ageing population and ongoing technology innovation will also help underpin pathology and radiology test volumes,” Morningstar said.

Last month, Primary Health Care Limited reported a pleasing set of full year results, the highlight being a 14.3% jump in the full year dividend to 20 cents per share. Despite that, shares in the medical centre operator are trading close to a 52-week low.

Primary Health Care shares trade on a P/E of around 14 and a fully franked dividend yield of around 4.5%. Given that modest valuation, and attractive dividend yield, it’s no wonder Morningstar is attracted to the shares.

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Bruce Jackson does not own shares in Primary Health Care.

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