Ramsay Ramps Up Pharmacy Push, Shares Remain Undervalued

This Dominant Tier 1 Private Hospital Operator Offers Growing yet Defensive Earnings

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Equity Bottom-Up

<p>We maintain our AUD 87 per share fair value estimate for narrow-moat Ramsay Health Care, after management reiterated fiscal 2018 EPS growth guidance of between 8% and 10%. This compares with our forecast 2018 EPS growth assumption of 9%, representing EPS of AUD 2.85. At current levels, shares are trading at a significant discount to our valuation. As outlined in our special report <a href="https://www.smartkarma.com/insights/ramsay-s-prescription-for-growth" target="_blank" data-smartkarma-citation="insights:14218">Ramsay’s Prescription for Growth</a>, we continue to believe the market is underappreciating the company’s leadership…</p>

We maintain our AUD 87 per share fair value estimate for narrow-moat Ramsay Health Care, after management reiterated fiscal 2018 EPS growth guidance of between 8% and 10%. This compares with our forecast 2018 EPS growth assumption of 9%, representing EPS of AUD 2.85. At current levels, shares are trading at a significant discount to our valuation. As outlined in our special report Ramsay’s Prescription for Growth, we continue to believe the market is underappreciating the company’s leadership…

Maintaining FVE for Ramsay Health Care After Management Reiterates Guidance