Quote:
quote:Ryman Healthcare ACCUMULATE
Report: FY06 Result Review John Cairns
#56256;#56510; RYM reported an impressive FY06 operating profit (EBITDA) of
$38.2m, a 39.9% increase on FY05 and broadly in line with our
expectations.
#56256;#56510; We have upgraded our FY07 and FY08 operating profit forecasts by
5.5% and 5.9% to $47.2m and $53.3m respectively due largely to
increases in our underlying average Resales assumptions.
#56256;#56510; We have adopted RYM's longer-term New Sales target of 300 units
pa increasing our valuation to $7.56. Due to the small valuation
gap, we have reduced our recommendation from BUY to
ACCUMULATE.
So good news all round, and the recommendation is downgraded (because of the closing of the valuation gap). Make sense?