The NIB Holdings Limited (ASX: NHF) share price has been a very strong performer over the last six months.
Since this time in November, the private health insurer's shares have raced 19% higher.
As a comparison, over the same period, the benchmark ASX 200 index has gained just 1.5%.
This leaves the NIB share price trading at $8.00, which is just 20 cents short of its 52-week high.
Image source: Getty Images
Why has the NIB share price outperformed?
Investors have been buying NIB's shares due to its improved outlook and recent update.
That update revealed that the company has raised its guidance for net policyholder growth for Australian residents in FY 2023 to 4% to 5% from 3% to 4%.
Management also revealed that ancillary claims are returning to normal, hospital claims are showing a modest uplift but remain subdued, and its net margins remain strong with a gradual return to its 6% to 7% target expected over the longer term.
Can its shares keep rising or have they peaked?
As things stand, the broker community appears to believe that the NIB share price may have peaked for the time being.
For example, Citi and Morgans both have the equivalent of buy ratings on its shares but with price targets of $7.85 and $7.55, respectively. These are both lower than where the company's shares trade today.
Elsewhere, Macquarie and Morgan Stanley have the equivalent of hold ratings with price targets of $7.65 and $6.95, respectively, and Ord Minnett has a lighten rating with a $7.00 price target.
Though, that doesn't necessarily mean that the NIB share price can't keep rising. It just means that brokers are unlikely to be recommending its shares to clients until they are trading at a more attractive level.
In addition, a strong result in August from NIB could have brokers revisiting their models and price targets. Fingers crossed for shareholders that this happens.
