Raj Sinha, an analyst from HSBC, has initiated a new Buy rating on Auna S.A. Class A (AUNA).
Raj Sinha’s rating is based on Auna S.A. Class A’s unique business model, which concentrates on high complexity medical procedures such as oncology and cardiology, leading to high asset turnover and margin profile. This specialization ensures a more predictable patient demographic and treatment outcome compared to general hospitals. Additionally, Sinha highlights the attractive valuation of Auna’s shares, especially after a significant price drop post-IPO, noting that the company’s trading multiples are lower than those of its Latin American peers and at the lower end of the global peer range.
The Buy rating further takes into consideration Auna’s impressive track record of inorganic growth and expansion across Latin America, as well as the potential for significant short-term and organic growth. Sinha points out the upcoming launch of oncology healthcare insurance plans in Mexico and the opportunities for expanding the healthcare network in Peru. These factors, combined with the expectation of EBITDA margin improvement, underscore the potential for earnings momentum, justifying the Buy rating and the target price with a significant implied upside.
In another report released on April 16, J.P. Morgan also initiated coverage with a Buy rating on the stock with a $16.00 price target.
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Auna S.A. Class A (AUNA) Company Description:
Auna is a Latin American healthcare company with operations in Mexico, Peru and Colombia, prioritizing prevention and concentrating on high complexity diseases that contribute the most to healthcare expenditures. Our mission is to transform healthcare by providing access to a highly integrated healthcare offering in the underpenetrated markets of Spanish Speaking Americas.
