Erste Group sees robust growth potential for MedLife’s shares
Based on Q1 results, Erste Group upheld the RON 28.5 target for the price of the shares of Romanian private medical services provider MedLife (BVB: M), implying a 58% growth potential, according to a report published at Bucharest Stock Exchange (BVB) where the M shares are traded.
The growth potential diminished after MedLife’s shares rose to RON 19.2 on May 24, compared to RON 18 on May 20 when the report was compiled.
The main drivers of the company remain unchanged, with pent-up demand complementing very strong pricing power and a successful organic and M&A growth strategy, Erste Group’s analysts argue.
“Our conservative forecast assumptions remain unchanged and are validated by the financial results of the first quarter of 2022,” the report reads.
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