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Medical technology & services

Peel Hunt sees greater value in Spire Healthcare but expects 250p Toscafund deal to succeed

Peel Hunt, which carries a 'buy' recommendation and 282p target price on Spire Healthcare Group Plc (LSE:SPI), said it sees more value in the company than the 250p per share offer tabled by Toscafund Asset Management but would not be surprised to see the deal go through.

Analyst Miles Dixon noted that Spire's largest shareholder had previously provided irrevocable undertakings at 240p and 245p when Ramsay Health bid for the company in 2021, suggesting appetite to accept at the current level.

The 250p proposal implies roughly 66% upside from the current share price of 150p, which Peel Hunt described as essentially a post-pandemic five-year low.

Separately, Spire confirmed that trading in the four months to April was in line with expectations, with private patient revenue growing strongly, particularly in self-pay, and NHS volumes well underpinned with more than 85% of commissioning agreed.

The company reiterated its full-year guidance of adjusted EBITDA broadly in line with the £268.6 million delivered in 2025, with consensus at roughly £273.5 million.

Delivery of the £30 million cost-saving target remains on track and the primary care division is also trading well.

Toscafund has until 11 June to either announce a firm intention to make an offer or walk away.

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