leadf
logo-loader
viewSpire Healthcare Group

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

The private hospital operator is well-placed to deliver capacity, according to analysts

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

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 £10bn 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.

Quick facts: Spire Healthcare Group

Price: 118 GBX

LSE:SPI
Market: LSE
Market Cap: £473.28 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

SourceBio International gets set for IPO as Covid-19 testing demand becomes...

SourceBio International's Jay LeCoque talks to Proactive London's Katie Pilbeam ahead of their IPO on AIM. He explains that Covid-19 is now their main focus, to support the government effort to get the pandemic testing campaign under control. The IPO, values the company at £120m, which Jay...

9 hours, 34 minutes ago

2 min read