Ramsay Health Care's (ASX:RHC) Australian Hospital business is expected to achieve underlying improvement in market share, surgical mix increase, capacity utilization improvements, and small margin increases as the firm continues to achieve private health insurance agreements that cover wage inflation, according to a Monday note by Jarden
A re-orientation of the firm's portfolio should assist with the business' cash generation and returns. Its new management flagged a strong focus on strengthening capital discipline while improving portfolio capital returns.
Divesting Ramsay Sante via an in-specie distribution was expected and looks to be on track for completion by November at the latest, delivering a simplified and de-geared group. Additional divestments are planned both in the UK and Australia.
The investment firm retained its overweight rating on Ramsay and its AU$45.20 per share price target.