Life Healthcare is an international healthcare provider. Its geographic footprint spans across southern Africa, the United Kingdom, and Europe. In southern Africa, the group operates a hospital division and a healthcare services division. The international segment includes Life Molecular Imaging (LMI), which is currently held for sale.
Fundamentally, we view Life Healthcare as a solid player within the healthcare space. We expect persistence in elective surgery demand to remain supportive of volumes and margins, which may translate into decent bottom-line growth over the medium term.
Technically, a price holding above its 200-day simple moving average makes the share attractive as an investment opportunity. This indicator signals strong bullish momentum and long-term uptrend stability. This level also coincides with the 38.2% Fibonacci retracement, providing additional support and reinforcing its significance.
According to forward calculations of the RSI (Relative Strength Index), the stock will be overbought at ~R27. This classifies our profit target of R17.50 as realistic. We suggest a medium capital at-risk allocation to this trade. Increase exposure for a break above R15.50.
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