Nomura upgrades Fortis Healthcare to "buy"

Last Updated: Fri, May 03, 2013 07:26 hrs

Nomura upgrades Fortis Healthcare Ltd to "buy" from "neutral", but cuts its target price to 124 rupees from 170 rupees, citing recent underperformance and improvement in return ratios.

"Near-term ROE (Return on equity) is low at 1-3 percent but we expect average incremental ROE over the next five years to be 33 percent," said Nomura in a report.

The investment bank adds that in its view Fortis has come to the end of an investment cycle and will now focus on cash flows and profitability.

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