Max Healthcare stock price target raised to INR1,550 by UBS on growth outlook

Published 16/10/2025, 13:40
Max Healthcare stock price target raised to INR1,550 by UBS on growth outlook

Investing.com - UBS has raised its price target on Max Healthcare Institute Ltd (NSE:MAXHEALT) to INR1,550 from INR1,350 while maintaining a Buy rating on the stock.

The upgrade reflects UBS’s view that Max is "best positioned for hospital asset creation among peers," with expected earnings growth driven by utilization improvements and Average Revenue Per Occupied Bed (ARPOB) increases at multiple facilities including Dwarka, Noida, Lucknow, Nagpur and Mohali hospitals.

UBS highlighted the recent government price increase for Central Government Health Scheme (CGHS) patients as particularly beneficial for Max, which has the highest exposure among peers to this segment, potentially increasing the company’s EBITDA by 4% and EPS by 6%.

Despite some delays of 1-3 months in new capacity additions, UBS believes these setbacks are already reflected in the stock price after Max’s year-to-date performance has remained flat compared to peers’ gains of approximately 25%.

The new price target incorporates both the capital expenditure delays and benefits from CGHS price increases, resulting in UBS’s 1-4% higher earnings per share estimates for fiscal years 2026-2028.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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