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HomeNewsBusinessMarketsApollo Hospitals shares gain as Jefferies raises target price; sees 26% upside

Apollo Hospitals shares gain as Jefferies raises target price; sees 26% upside

Motilal Oswal Financial Services and Prabhudas Lilladher also have a Buy rating for the healthcare major

February 16, 2023 / 10:20 IST
     
     
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    Apollo Hospitals Enterprise saw a rise in its stock prices on February 16, following a positive report from global research and broking firm Jefferies.

    At 10.11 am, Apollo Hospitals Enterprise was trading at Rs 4,609 on the National Stock Exchange, 2.70 percent higher from the previous close.

    Jefferies raised their price target for the stock by over 5 percent to Rs 5,375 while retaining their Buy rating. This new target price reflects a 26 percent upside potential from Wednesday's closing price.

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    Jefferies praised the healthcare major's management commentary, as management guided for breakeven of Apollo HealthCo by the end of FY24 on operating leverage and reduction of investments. The management also believes that Apollo 24/7 investments have peaked in 3Q and will come down from here on.

    Based on this positive guidance, Jefferies also raised their EBIDTA margin estimates for FY24/FY25 by 7 percent/8 percent on higher growth in group hospitals and Apollo HealthCo business, and declining losses in the latter.

    Apollo Hospitals Enterprise's diagnostics and retail health, digital health, and pharmacy distribution verticals, which come under Apollo HealthCo, reported a combined loss of Rs 107.3 crore in the third quarter. Despite this, Jefferies remains optimistic about the company's future prospects, particularly in light of its management's positive outlook.

    Aside from Jefferies, at least two other brokerage firms, Motilal Oswal Financial Services and Prabhudas Lilladher also have a Buy rating for the healthcare major.

    Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.​

    Vaibhavi Ranjan
    first published: Feb 16, 2023 10:20 am

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