Jefferies lifts PT on Australia's Regis on $48-mln deal to buy aged care homes

Regis Healthcare

15/11/2023 22:33

** Jefferies raises PT for Australia's Regis Healthcare
 REG.AX  to A$3.35 from A$2.86; retains "Buy" rating
    ** Company acquires premium aged care homes in SE Queensland
for A$74.2 mln ($48.26 mln)
    ** Residential aged care provider expects acquisition to
increase EPS in FY24 with further growth in future years
    ** Jefferies hikes FY24 and FY25 EPS estimates by 4% and
10%, respectively
    ** Brokerage calculates net debt-to-EBITDA gearing of 0.5x
once the transaction closes
    ** Company's median PT is A$2.84 – LSEG data
    ** Stock up 52.3% this year, as of last close

 ($1 = 1.5375 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))