Mediclinic slides in delayed reaction to negative analyst report
Mediclinic International’s share price fell 4.4% to R116.01 after the JSE opened on Tuesday morning, a delayed reaction to a negative analyst report from investment bank Jefferies that caused its share price to drop 5.1% to 646p in London on Monday.Jefferies said in a note on Monday that it expected the private hospital group’s next trading statement scheduled for release on October 17 to flag a disappointing performance for the six months to end-September. Mediclinic is scheduled to release its interim results on November 16.The investment bank cut its forecast for Mediclinic’s share price to 550p from 650p, and held its rating at "underperform".Mediclinic’s merger with United Arab Emirates (UAE) hospital group Al Noor in February 2016 has so far failed to deliver the promised benefits, with its share price sliding from more than R200 to less than R120 over the past 20 months."We continue to believe the market is likely to be disappointed at the first-half trading statement and res...
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