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NMC ups its guidance

After a turbulent few months for the share price, the Middle East hospital operator has given its investors some good news
October 24, 2018

It’s unlikely that NMC’s (NMC) investors would have been disappointed with the forecast 22 per cent increase in revenue in 2018, but the 24 per cent achieved looks that little bit sweeter. A strong bout of trading in the past few months has prompted management at the Middle East hospital giant to upgrade its guidance for 2018. Adjusted cash profits (Ebitda) are now expected at $480m (£371m), from $465m previously.

IC TIP: Buy at 3244p

The update will no doubt have come as a relief to investors who have watched NMC’s share price tumble 21 per cent since August. It’s hard to pinpoint the cause of that fall, but media speculation that the group was considering acquiring assets in India may have played a part. Management quashed those rumours at the end of August.