SA’s three largest private hospital groups are still attractive investments, despite the scars of an on-going battle with Covid-19 and its impact on their normal operations, reported Fin24 (24 August 2021). According to Jithen Pillay, investment analyst at Allan Gray, private hospital groups traditionally have “attractive features”, and are fairly defensive, with demand that doesn’t tend to fluctuate cyclically, despite the tough run they have

had with Covid-19,

Zaid Paruk, a portfolio manager and analyst at Aeon Investment Management, said in the last 12 months, Life Healthcare’s share price increased by more than 40%, followed by Netcare at almost 28% and Mediclinic trailing behind with a 6% rise.

“Netcare also had a strong investment case because it had additional capital, a strong balance sheet, and it could, for example, have higher dividends and do share buy backs that could lead to a good outcome.”

Regarding Mediclinic, Paruk said the group should benefit from its regional diversification, with its operations in the UAE, Switzerland and

South Africa.

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