Ramsay Health Care Limited (ASX: RHC) share price has been on a rollercoaster ride recently.
Shares in the health care company reached a high of $69.49 in November only to fall as low as $58.71 in January. At the time of writing, the Ramsay Health share is trading at $63.66, up 2.22%.
Despite the volatility, it appears that brokers are positive about the future of the company. We take a look at some of the reasons why.
A major acquisition
Ramsay Health Care announced last month that it was putting a cash offer to acquire the UK-based Spire Group. Spire is an independent hospital group focused on the private patient market and a leading provider of high-acuity care.
The UK acquisition appears to be a logical step for Australia’s largest private hospital provider.
As described in its company literature, Ramsay “provides quality health care through a global network of clinical practice, teaching and research”. The company says its global network extends across 10 countries, with more than eight million admissions/patient visits to its facilities in more than 460 locations.
Which brokers are positive on the company?
Citi Bank yesterday upgraded Ramsay Health Care to a buy. The broker attributed to rating upgrade to the recent fall in the Ramsay share price and the fact that company has underperformed the ASX 200 by 14% in the last quarter.
Citi expects an big upside with the Spire acquisition, COVID-19 restrictions being lifted and hospitals getting back to normal.
Analysts at Macquarie are also positive about the healthcare company. Macquarie has retained its outperform rating and $74.85 price target on Ramsay Health Care.
Macquarie believes that the Spire deal stems well for the Ramsay share price and long term growth in the lucrative UK market.
With the Ramsay share price currently trading around $63, Macquarie’s price target is a whopping 20% upgrade on the current price.