Equita Sim Reaffirms Buy Rating for Garofalo Health Care S.P.A. Amid Strategic Growth and Market Expansion

, an analyst from Equita Sim, maintained the Buy rating on Garofalo Health Care S.P.A. (GHC – Research Report). The associated price target remains the same with €6.50.

Equita Sim has given its Buy rating due to a combination of factors that highlight Garofalo Health Care S.P.A.’s strong market positioning and strategic growth initiatives. The company has demonstrated a robust performance through its strategic investments and expansion plans, particularly with the Aurelia Group, which has seen a significant increase in public funding and is working to expand its private activities. Additionally, the growth in revenue from private and out-of-region patients underscores the strength of GHC’s offerings, supported by structural drivers such as longer public sector waiting lists and the rising adoption of private health insurance.
Furthermore, GHC’s strategic initiatives, including its M&A strategy and the development of a new Heart Centre project, are expected to enhance its market presence and profitability. The company’s M&A strategy is focused on consolidating the fragmented Italian market, and its real estate and cardiac hub projects are poised to elevate its operational standards. With a solid track record in enhancing acquired assets and an attractive valuation at approximately 8.5x–8x EV/EBITDA, Equita Sim views GHC as well-positioned to capitalize on the increasing demand for healthcare services in Italy.