Erste upgrades to Accumulate shares of Romanian medical services provider MedLife
<p>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.</p>

<p>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.&nbsp;</p>

<p>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.&nbsp;</p>

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

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: MedLife)</em></p>