This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Observations – For
Observations – Against
Shares in long term uptrend. The company operates in a defensive sector, healthcare being more necessity than choice. The company continues to be acquisitive, expanding in Saudi Arabia in June and raising $450m via a convertible bond offering at an attractive 1.875% coupon/interest rate in April. The company recently reported 2017 pre-tax profits +39%, on revenues +31%, (margins expanding) up 4.8x and 3.6x, respectively, since 2011.
Risks to NMC shares include problems in the Middle East geography where it is focused, FX headwinds reducing profits, disappointing results in August, problems with acquisitions, a strong global equity market rally that sees riskier names preferred versus defensives and a low dividend yield making it less attractive than other UK Index names.
Broker consensus is bullish, with 82% of analysts saying Buy, none saying Sell. Furthermore 67% of broker targets suggest upside from current levels. The consensus target of 3882p is just above May’s 3860p highs and just below our short-term objective of the current uptrend extending towards 3900p.
Next Event: Interim Results 20 Aug
Latest Broker 12-Month Consensus: 82% Buy, 18% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 5.6 | 2.0 | 7.9 | 15.0 | 75.2 | 191 | 355 | 696 | 1,157 |
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Prepared by Michael van Dulken, Head of Research