NEWS

Equita reaffirmed its target price at 5.5 euros per share and Buy recommendation on Garofalo Health Care (GHC) after the company reported results for 2022.

Analysts wrote that the fourth quarter of 2022 was slightly better than expected, with good margin recovery. Management's indication of the beginning of the year is supportive and implies good entry speed into 2023. Equita conservatively confirmed 2023-24 EBITDA, reducing EPS (-6%/-5%) mainly due to higher financial expenses.

"We believe the overall environment is favorable for GHC, given its strong geographic positioning in the main regions of northern Italy, with the possibility to benefit from potential increases in healthcare spending to address waiting lists, as well as growing demand from private clients," the research states. "In addition, M&A remains an important growth lever with a firepower of €100 million.