The Ramsay Health Care Limited (ASX: RHC) share price has been a bit of a disappointment over the last 12 months. During this time it has fallen by approximately 5.5%.
But according to one leading broker, now could be a good time to consider accumulating shares.
What has the broker said?
A note out of Ord Minnett this week reveals that its analysts have given the private hospital operator an accumulate rating with a slightly reduced $80.00 price target. For those that are unaware, an accumulate rating ranks between buy and hold ratings.
This price target implies potential upside of almost 20% for its shares over the next 12 months.
According to the note, the broker believes that its Australian operations will be the main driver of growth during the first-half of FY 2018 along with the benefits of its multi-year procurement savings program.
Overall, its analysts have forecast a 7% increase in Australian revenue despite the negative impact of cuts to prostheses prices. Ramsay is due to release its half-year result on February 28.
Should you invest?
Whilst I think that Ramsay is one of the best shares in the healthcare sector and a great buy and hold investment option, it may be prudent for investors to sit tight and wait to see how Ramsay's first-half has been before hitting the buy button.
After all, with its shares trading at a premium to the market average, if its first-half falls short of expectations then its share price could take a tumble. This would of course present investors with an opportunity to buy shares at an even more attractive price.
If its result is solid and its outlook positive, I would suggest investors snap up shares ahead of industry peers Healthscope Ltd (ASX: HSO) and Primary Health Care Limited (ASX: PRY).
