In morning trade the Ramsay Health Care Limited (ASX: RHC) share price has climbed higher following the release of its annual general meeting presentation.
At the time of writing the private hospital operator's shares are up almost 4% to $67.30.
What was in the presentation?
As well as updating the market on its growth strategy and the positive long-term outlook for its business due to ageing populations, the proliferation of chronic disease, and innovation in treatments and technologies, management also spoke a little about its full-year guidance.
According to the release, based on operating conditions in each of its core markets, the continued successful execution of its strategy, and barring unforeseen circumstances, management reaffirmed that it expects its core earnings per share to grow between 8% and 10% for FY 2018.
Judging by the market's reaction today and the weakness in its share price since its full-year results release, many investors may have been expecting the company to downgrade its guidance in light of falling private hospital cover participation.
Earlier this month APRA revealed that private hospital cover has fallen to its lowest level in over five years amid rising costs and delays in long-promised reforms.
This led to Ord Minnett downgrading the shares of rival Healthscope Ltd (ASX: HSO) to a hold rating with a price target of $1.95 this week.
Should you invest?
As arguably one of the highest quality businesses on the market with such bright long-term growth prospects, I continue to believe that Ramsay is one of the best buy and hold investment options on the Australian share market.
