NIB Holdings Limited (ASX: NHF) shares are ending the week in a positive fashion.
In late trade, the health insurer's shares are up 1% to $7.55.
This latest gain means that its shares are now up over 9% since this time last year.
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Can NIB shares keep rising?
The good news is that a number of brokers believe that NIB shares can continue their ascent over the next 12 months.
For example, according to a note out of Citi from last week, its analysts have upgraded its shares to a buy rating with a $8.35 price target.
Citi has been pleased with the company's performance this year and feels that it is well-placed to manage claims inflation. It said:
With arhi reporting stronger growth than at this stage a year ago and decent momentum in iihi and NZ, we believe nib looks attractive. Claims inflation is likely picking up with some out of cycle contract renegotiation with hospitals. However, we believe nib should be in a strong position to manage this, at least in the shorter term.
Elsewhere, the team at Goldman Sachs sees scope for NIB shares to rise a touch higher. Last week, it retained its buy rating with an $8.40 price target. This implies an 11% upside from current levels. The broker said:
We currently have a preference for NHF in this space reflecting strong underlying top line growth through policyholder growth and premium rate increases, shareholder-friendly interpretation to not profit from Covid-19, while offering greater diversity of earnings outside of regulated resident health insurance.
It is also worth highlighting that Citi and Goldman Sachs both expect attractive dividend yields in FY 2024. They have pencilled in fully franked dividends per share of 30 cents and 28.8 cents, which equate to yields of 4% and 3.8%, respectively.
