Spire Healthcare PLC (LON:SPI) sahres climbed 7% as RBC upgraded its share price target by almost 50%.
The Canadian broker said any doubts its forecasts for the private hospital group were too optimistic had been eased by new data.
First, top UK insurance billing management company Healthcode has reported that industry demand steadily increased from June through to end-September.
Average out-patient activity for September was at the mid-90s per cent of 2019 with in-patient activity in the mid-80s.
Hip and Knee data also showed Spire’s activity recovering strongly in September and October, said RBC, while diagnostic activity in pathology and radiology is well over 100% of prior year's activity across the industry with oncology and general surgery outpatient activity is at 123% and 113% of 2019 levels.
RBC added its forecasts are 42% higher than the consensus for earnings in 2021, but with PMI demand recovery and capacity availability both moving in Spire’s favour, the broker is more certain of its numbers.
Its new share price target is 169p, from 115p, and outperform/speculative risk RBC's investment stance.
Shares rose 6.6% to 129.4p.