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Shares of Max Healthcare Institute Ltd. opened higher on Friday, October 17, after Swiss investment bank UBS raised its price target on the stock, describing it as a "super compounder."
UBS increased its price target on Max Healthcare by 15% to ₹1,550 from ₹1,350 earlier. The new target implies a potential upside of around 30% from the stock's closing price on Thursday. The brokerage has also maintained a 'Buy' rating on the stock.
According to UBS, Max Healthcare is well-positioned to deliver both capacity expansion and earnings growth. The brokerage said that a Central Government Health Scheme (CGHS) price increase would provide a meaningful tailwind for the company.
UBS estimates an 18% compound annual growth rate (CAGR) in bed additions between FY25 and FY28, with around 80% of new capacity coming in Metro and Tier-1 markets.
The brokerage expects Max Healthcare to deliver EBITDA and earnings per share (EPS) CAGRs of 30% and 33%, respectively, over FY25–28, which justifies its premium valuation.
Max Healthcare shares are now trading 0.85% higher at ₹1,185.30. The stock is up 4% in 2025 so far.
With inputs from Nimesh Shah
UBS increased its price target on Max Healthcare by 15% to ₹1,550 from ₹1,350 earlier. The new target implies a potential upside of around 30% from the stock's closing price on Thursday. The brokerage has also maintained a 'Buy' rating on the stock.
According to UBS, Max Healthcare is well-positioned to deliver both capacity expansion and earnings growth. The brokerage said that a Central Government Health Scheme (CGHS) price increase would provide a meaningful tailwind for the company.
UBS estimates an 18% compound annual growth rate (CAGR) in bed additions between FY25 and FY28, with around 80% of new capacity coming in Metro and Tier-1 markets.
The brokerage expects Max Healthcare to deliver EBITDA and earnings per share (EPS) CAGRs of 30% and 33%, respectively, over FY25–28, which justifies its premium valuation.
Max Healthcare shares are now trading 0.85% higher at ₹1,185.30. The stock is up 4% in 2025 so far.
With inputs from Nimesh Shah
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