If youâre looking for exposure to the healthcare sector, then Ramsay Health Care Ltd (ASX: RHC) could be the way to do it.
Thatâs the view of analysts at Morgans, which see major upside ahead for this ASX 200 healthcare share.
What is the broker saying about this ASX 200 healthcare share?
In response to a recent trading update, the team at Morgans has retained its add rating with a slightly trimmed $75.57 price target.
Based on the current Ramsay share price of $60.58, this implies potential upside of 25% for this ASX 200 healthcare share over the next 12 months.
In addition, the broker is forecasting a 2.2% dividend yield over the next 12 months, boosting the total potential return on offer with its shares even further.
What did it say?
While the broker wasnât blown away by Ramsay Health Careâs trading update, it was pleased with underlying trends. It explained:
A nine-month FY23 trading update highlighted improving volumes across all regions on increased surgical activity, although margins and profit lagged. While COVID-related headwinds are subsiding, labour shortages and inflationary pressures remain, dampening a full recovery in underlying profitability.
The good news is that Morgans expects these headwinds to ease in time and for its profits to rebound. It adds:
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.
All in all, the sum of the above is that the broker believes that this makes Ramsay an ASX 200 health care share to buy right now for patient investors.
The post Buy this ASX 200 healthcare share for a 25% return: broker appeared first on The Motley Fool Australia.
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More reading
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- 3 ASX 200 stocks getting hammered following trading updates
- CSL shares dip despite new FDA approval
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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