Barclays reiterates NMC Health as 'top pick' in sector

Analysts at Barclays reiterated NMC Health (overweight; target price: 4,275.0p) as their 'top pick' within the sector following a roadshow by the company's management earlier in the same week.

Discussions at the roadshow had focused on the fundamentals of the business, with its business performance continuing to exceed expectations thanks to record numbers of patients.

"It was therefore unsurprising that management were perplexed at the dislocation between fundamentals and the stock price," they said.

Investors were sounding a similar tune, describing the firm's recent first half results as "encouraging", particularly as regards the firm's improving free cash flow.

"Further evidence of execution, approval of the buyback and debt paydown should drive a re-rating in the shares, which screen attractively relative to the growth. We detail the key takeaways below. NMC Health remains our Top Pick in the sector."