Spire Healthcare upgraded to ‘overweight’ by JP Morgan due to pent-up demand

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Spire Healthcare Group PLC (LON:SPI) was upgraded to ‘overweight’ from ‘equal weight’ by JP Morgan since pent-up demand is building in both the private sector and the NHS.


Analysts said the private hospital operator is well-placed to deliver capacity while the post-pandemic dynamics “look to have improved significantly”.


READ: Spire Healthcare Group swings to loss, chairman announces retirement


The investment bank, which set the price target at 175p, also noted there are GBP10bn in-play to reduce NHS waiting lists.


“Spire will look to solve supply on all three streams in a fashion that should lead to significantly improved margins – from capacity utilization and mix (within the boundaries of good corporate citizenship),” analysts commented.


“The tail-risk of covenant breaches appears to have been removed, leaving investors to triangulate where earnings could go, and implications for the valuation.”


Shares dipped 1% to 94.57p on Monday morning.

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