On Thursday, RBC Capital Markets adjusted its outlook on Spire (NYSE:SR) Healthcare (SPI:LN) (OTC: SRRHF), increasing the price target to GBP3.10 from the previous GBP2.90. The firm sustained its Outperform rating on the stock.
The revision followed Spire Healthcare's recent disclosure of detailed cost-saving measures aimed at margin improvement. The company has been experiencing strong demand and is now seeing a reduction in political risk.
Additionally, Spire has been working on optimizing pricing strategies and has provided clearer insights into its cost-saving initiatives, which has led to raised forecasts by RBC Capital Markets. The firm now projects a 3% increase in EBITDA and an 8% rise in profit before tax (PBT) for the year 2026.
The analyst from RBC Capital Markets highlighted that the improved visibility into the company's savings and the stable demand are key drivers for the positive outlook. Furthermore, comments from Spire's management indicating that the major shareholder, Mediclinic, does not intend to sell its shares have alleviated concerns about potential market overhang.
The endorsement of Spire's strategic initiatives and the confidence in the company's future performance are encapsulated in the analyst's statement. "We nudge our price target up to 310p, from 290p, and reiterate our Outperform rating," the analyst noted.
This price target upgrade reflects a more optimistic view of Spire Healthcare's financial prospects and operational stability, as the healthcare provider continues to execute its strategic plans and capitalize on favorable market conditions.
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