Life Healthcare favoured among SA’s listed hospital groups
Both Allan Gray and Perpetua believe the low-cost operator is poised to benefit from a post Covid-19 recovery
Life Healthcare seems to be the preferred stock among SA’s listed hospital groups with both Allan Gray and Perpetua naming it among their favoured picks in a sector that has plenty of scope for recovery as the world slowly extricates itself from the grip of the Covid-19 pandemic.
The proven lost-cost operator is now SA’s second-biggest private hospital group with 9,136 registered beds and a diversified income stream that includes an extensive presence in Western Europe via its stake in Alliance Medical Group (AMG), which brings in almost a third of its revenue. While Life Healthcare’s share price is only down a marginal 2.64% since the start of 2020, having recovered strongly from the sharp sell-off in the midst of the Covid-19 market turmoil last year, analysts believe it is still undervalued given its strong fundamentals...
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