Erste Group on June 7 revised upwards the 12-month target price for the shares of Romanian medical services provider MedLife (BVB: M) to 6.06, up 12% above the current (June 11) trading price, and changed its recommendation from Hold to Accumulate based on Q1/2024 financial results.

The bank’s analysts explain the upgrading of the target price with the better-than-expected results of the first quarter and the “management-validated expectations” for the evolution of drivers of the existing business in terms of unit and average fee growth and expenses for the main cost items. 

The company reported its revenues rose by 22% y/y to RON 645 million (EUR 130 million) in Q1, mainly supported by the segment of clinics and hospitals, while its net profit surged by 56% y/y to RON 13 million. 

The company’s market capitalisation is RON 2.88 billion (EUR 578 million) after its shares rose by 16.3% y/y.

iulian@romania-insider.com

(Photo source: MedLife)