Berenberg hails NMC Health's ability to deploy capital, boosts target

Analysts at Berenberg hailed NMC Health's latest set of half-year figures, dubbing them "impressive", and its ability to "deploy capital", after management announced roughly $200m-worth of new acquisitions - not all of which had been previously disclosed.

Regarding the Emirates-focused company's operating performance during the period, the German broker highlighted the "meaningful" increase seen in revenues per patient across all of NMC's verticals, with sales in its Healthcare, Long-Term & Home Care and Maternity & Fertility divisions having all "modestly outperformed" its forecasts.

As well, NMC's distribution margins had "materially exceeded" Berenberg' estimates.

Aside from the over $100.0m of previously undisclosed mergers and acquisitions outlined in Monday's figures, Berenberg estimated that roughly $100.0m more of M&A had been conducted post period-end.

Notable among the latter, Berenberg said, was the purchase of Aspen, a UK company with four hospitals and five clinics which NMC will use as a platform for a UK IVF Business.

The broker also noted "strong" growth in Dubai and Oman which, would support the company's expansion plans.

On the back of all of the above, Berenberg revised its target price on the shares from 4600p to 5400p, whils reiterating its recommendation to 'buy'.

As of 1123 BST, shares of NMC were rising by 5.81% to 4,296.0, having hit a fresh all-time high of 4,376p earlier during the session.