The Ramsay Health Care Limited (ASX: RHC) share price has given investors one of the strangest performances on the ASX over the past 12 months. This ASX 200 healthcare stock is trading at $57.69 a share at the time of writing, up 0.26% for the day so far. But just over a year ago, Ramsay shares had just shot the moon, rising as high as $85 a share.
This spike in value was a consequence of a takeover offer that Ramsay received. As we covered at the time, private equity giant Kolberg Kravis Roberts (KKR) lobbed an $88 per share cash offer to acquire the private hospital operator in full. But the deal ended up souring, with KKR pulling its offer back in August last year.
It has been downhill for this ASX 200 stock ever since, with Ramsay shares now down more than 31% from those euphoric highs we saw in April 2022:
Ramsay shares are also down by around 10.5% in 2023 to date and by 24% over the past 12 months. But now that this ASX 200 healthcare stock is back under $60, could it be a bargain ASX buy today?
Well, let's see what a couple of ASX brokers reckon.
Is this ASX 200 stock a bargain buy today?
Last month, my Fool colleague James covered the thoughts of broker Morgans. Morgans wasn't too impressed with the company's April trading update and reduced its share price target for Ramsay last month.
But it still retained an add rating on the company, with a new 12-month share price target of $75.57 a share. That would still result in a gain of 31% for shareholders in today's pricing if accurate.
Morgans noted that while COVID headwinds were subsiding, "labour shortages and inflationary pressures remain, dampening a full recovery in underlying profitability".
But Morgans remains bullish on the company, and is expecting profits to recover:
While the operating environment remains unpredictable and dynamic, with doctor/patient behaviour, inflation and workforce issues all defining the earnings profile, higher activity and improving (albeit slowly) productivity are suggestive of growing momentum.
Morgans is also expecting Ramsay to up its dividends over the coming year as well.
So that's one broker's rather bullish view.
Last month, we also covered the views of two more brokers on Ramsay. As my Fool colleague discussed, CSLA has also raised its rating on Ramsay shares to accumulate, with a share price target of $67.
However, another ASX broker in Wilsons isn't quite as optimistic. It cut its rating on the ASX 200 healthcare stock to 'market weight' and gave it a $65.88 share price target (which would still be a pleasing jump from current prices).
Thus, all in all, it seems that most ASX brokers are bullish on the Ramsy Health Care share price, and see it materially higher than it is today in a year's time. But let's wait and see what happens.
Right now the Ramsay Health Care share price gives this ASX 200 stock a market capitalisation of $13.22 billion, with a dividend yield of 1.71%.
