Deutsche Bank starts Medicover with 'buy' on stable revenue, growth in Europe and India
03/12/2024 09:19
** Shares of Swedish healthcare provider Medicover MCOVb.ST
rise 0.9% to SEK 182.2
** Deutsche Bank initiates coverage with a "buy" and TP of
SEK 210, citing stable revenues, Central European growth, and
strategies to counter German regulatory risks
** Says Medicover's diagnostics unit can offset German fee
reforms with growth in advanced testing and genetics across
Central Europe
** Adds that the company's healthcare services division has seen
mid-teens percentage growth since 2017, with revenue per member
outpacing membership growth, signaling a higher share of wallet
** Also notes Medicover's India operations should benefit from
positive operating leverage as the business matures, despite
challenges such as low hospital occupancy and margin pressure
** "The founders of the acquired business own 34% and are
still practicing doctors, giving us some comfort that incentives
are well aligned," the broker says in a note
** Avg recommendation of 6 analysts is a "buy" with no
"sell" or "strong sell" ratings; median TP is SEK 220 - LSEG
(Reporting by Jesus Calero)
((mailto:Jesus.calero@thomsonreuters.com))