Netcare Limited (NTC ZA)

SUMMARY | Position: LONG | Upside target: R17.40 | Reward / risk ratio: – | Recommended stop-loss: R14.00 | RECOMMENDATION: BUY

Netcare operates the largest private hospital network in South Africa, and is also a leading private trainer of emergency medical and nursing personnel in the country.

Recent financial results have been solid, and the expectation is that steady top-line growth will be complemented by efficiency gains medium term—supporting a strong earnings growth profile.

Technically, a share that is at one of the highest bars in terms of price distribution over the last four years makes for an appealing long position (see the insert on the main chart). Frequent trading at these levels suggest …