NMC Health: Shares of Shetty's UAE Hospital Chain to Fall Further - Bloomberg:
The Jefferies International Ltd. analyst who was ahead of the pack in predicting a slump in NMC Health Plc’s shares now says the stock has a lot further to fall.
James Vane-Tempest cut his price target on the hospital operator to 500 pence, or 42% below Friday’s close, from 1,300 pence previously. The target is the lowest among analysts tracked by Bloomberg.
The multiple of earnings that investors are willing to pay for NMC has fallen given the concerns raised by short seller Muddy Waters Capital LLC, Vane-Tempest wrote in a report Monday. The analyst, who has rated the stock underperform since November 2018, said his latest review shows that growth at the Abu Dhabi-based company’s clinics is slower than it appears, and that its cash position is tightening.
The analysis adds to the turmoil around NMC since Muddy Waters alleged in December the company manipulated its balance sheet and inflated the prices of assets it purchased. NMC has said the allegations are false, and that a committee of independent directors plans to publish findings of a review it commissioned before annual results are announced. In recent years, the company has published earnings in early to mid March.
The Jefferies International Ltd. analyst who was ahead of the pack in predicting a slump in NMC Health Plc’s shares now says the stock has a lot further to fall.
James Vane-Tempest cut his price target on the hospital operator to 500 pence, or 42% below Friday’s close, from 1,300 pence previously. The target is the lowest among analysts tracked by Bloomberg.
The multiple of earnings that investors are willing to pay for NMC has fallen given the concerns raised by short seller Muddy Waters Capital LLC, Vane-Tempest wrote in a report Monday. The analyst, who has rated the stock underperform since November 2018, said his latest review shows that growth at the Abu Dhabi-based company’s clinics is slower than it appears, and that its cash position is tightening.
The analysis adds to the turmoil around NMC since Muddy Waters alleged in December the company manipulated its balance sheet and inflated the prices of assets it purchased. NMC has said the allegations are false, and that a committee of independent directors plans to publish findings of a review it commissioned before annual results are announced. In recent years, the company has published earnings in early to mid March.
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