Spire Healthcare Group (LON:SPI) Cut to "Sector Perform" at Royal Bank Of Canada

Key Points

• Royal Bank of Canada downgraded Spire Healthcare to “sector perform” and cut its price target to GBX 250 from GBX 300, implying only 1.83% upside from the previous close.
• Deutsche Bank maintained a “buy” rating with a GBX 245 target; overall, analysts have a “Moderate Buy” consensus and an average target price of GBX 247.50.
• Spire shares opened at GBX 245.50, near their 12-month high, while the proposed £1.03 billion cash takeover offers a valuation catalyst but leaves investors exposed to deal-completion and approval risks.

Spire Healthcare Group (LON:SPI - Get Free Report) was downgraded by stock analysts at Royal Bank Of Canada to a "sector perform" rating in a report issued on Monday, London Stock Exchange reports. They currently have a GBX 250 target price on the stock, down from their prior target price of GBX 300. Royal Bank Of Canada's target price points to a potential upside of 1.83% from the stock's previous close.

Separately, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a GBX 245 target price on shares of Spire Healthcare Group in a research report on Friday, May 15th. One analyst has rated the stock with a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of GBX 247.50.

Spire Healthcare Group Stock Up 0.2%

Shares of LON SPI opened at GBX 245.50 on Monday. Spire Healthcare Group has a 12 month low of GBX 140.80 and a 12 month high of GBX 256.50. The company has a current ratio of 0.63, a quick ratio of 0.73 and a debt-to-equity ratio of 177.14. The firm has a market capitalization of £983.47 million, a price-to-earnings ratio of 61.38, a PEG ratio of 1.06 and a beta of 0.93. The business has a 50-day moving average of GBX 228.69 and a 200-day moving average of GBX 201.50.

Key Headlines Impacting Spire Healthcare Group

Here are the key news stories impacting Spire Healthcare Group this week:

• Positive Sentiment: Recommended cash offer provides a clear valuation catalyst. Spire has agreed to the offer from Tulip UK Bidco, backed by a Toscafund-led private-equity consortium. The all-cash transaction gives shareholders a defined exit value and is the main reason the stock is rising. Spire Healthcare agrees to £1.03bn takeover
• Positive Sentiment: Deal marks a substantial premium opportunity versus the pre-announcement valuation. The proposed £1.03 billion enterprise value is close to or above Spire’s recent equity-market valuation, supporting the view that shareholders are receiving an attractive offer and reducing near-term standalone execution risk. Spire Healthcare accepts GBP1 billion takeover offer
• Neutral Sentiment: Management and board changes accompany the transaction. Spire named David Sloman interim chief executive and announced a board overhaul as it proceeds with the takeover. The changes may help facilitate the deal, although they add transition risk until completion. Spire Healthcare names David Sloman interim CEO
• Negative Sentiment: Shareholders remain exposed to deal-completion risk. The takeover must still satisfy customary conditions and proceed through the required approval process. Any delay, competing bid or failure to complete could cause the shares to fall back toward their pre-offer level. The transaction also removes Spire from the public markets, limiting future upside for investors who do not participate in the cash exit. UK private hospital firm agrees takeover

Spire Healthcare Group Company Profile

Spire Healthcare Group plc, together with its subsidiaries, owns and operates private hospitals and clinics. It offers various treatments in the areas of allergy and infectious diseases, blood tests, bones and joints, bowel treatments, breast screening and surgery, cancer investigations and treatments, cosmetic surgery, cyst removal, and dental surgery, as well as ear, nose, and throat treatments. The company also provides eye surgery and treatments, family planning, gastroenterology, general medicine, general surgery, haematology, hand surgery, hip and knee treatment, and heart and kidney treatments.

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