Tough macros, rising inflation to challenge UK healthcare - Liberum

Malin

09/06/2021 09:34

** Liberum believes the macro backdrop for the UK small- and
mid-cap (SMID) healthcare sector will be "tougher" over the next
six months, after a strong H1
    ** Brokerage says the potential for a valuation-driven
rotation into large caps combined with a rising inflation
outlook will act as headwinds
    **  Medica  MGPM.L  and Puretech  PRTC.L  are Liberum's top
picks for the remainder of 2021; adds Clinigen  CLINC.L  could
be "vulnerable"
    ** Brokerage sees potential for a COVID-19 catch-up to boost
growth through a later-than-expected reopening of health systems
in Europe and the U.S for Uniphar  UPR.I , Sourcebio
International  SBI.L , Medica, Clinigen 
    ** "We expect hospital systems to return  to normal in Q3/4
and some companies (Uniphar, Medica) could benefit from a
build-up of patients in certain areas (electives), driving
upgrades," says Liberum
    ** Liberum changes PT for following cos:
    
 Company           Rating            New PT  Old PT
 Abcam             Hold              1400p   1500p
 CVS Group         Hold              2200p   1800p
 Dechra            Sell              3110p   3050p
 Pharmaceuticals                             
 Genus             Buy               5630p   5450p
 Malin             Buy               EUR     EUR
 Corporation                         9.6     9.7
 Medica Group      Buy               235p    220p
 Puretech Health   Buy               540p    550p
 Spire Healthcare  Hold              240p    180p
 Uniphar           Buy               EUR     EUR
                                     3.82    3.45
 
    

 (Reporting by Siddarth S)
 ((Siddarth.s@thomsonreuters.com;))