Korian: Credit Suisse raises target price

(CercleFinance.com) - Maintaining its buy ("outperform") rating on the share of retirement home operator Korian, this morning Credit Suisse raised its target price for the share from 38 euros to 45 euros, which means upside potential of over 25%.
Korian is also analysts' best pick in the sector.

In a research note, analysts raised their estimates for the group, factoring in average annual sales growth of 8% through to 2021 (including 4% organic growth, rather than 3% previously), while expecting the group's EBITDA margin to improve by 120 basis points over this period (instead of 80 points expected previously) to 15.5%.

"We believe Korian's differentiated strategy - notably its focus on less resource-consumptive care settings and integrated patient pathways - enhances its growth opportunities while improving its pricing power," the broker says in its report.



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