Shares in private hospital operator NMC Health (NMC) have jumped by 8% to £32.70 following upgraded guidance for earnings and sales.
The upgrades are the latest in a string of good news after NMC delivered robust trading and revealed a new national healthcare firm in Saudi Arabia via an exciting joint venture.
NMC has enjoyed a strong performance this year, hitting an all-time high of £40.60 in August before its shares fell nearly 20% amid wider market weakness and investors concerned about trading at rival Mediclinic (MDC).
Earnings at Mediclinic have been declining as fewer patients are visiting its Swiss hospitals.
Sentiment towards the broader sector has also been hit by a poor performance at Spire Healthcare (SPI), in which Mediclinic has a 29.9% stake.
UPGRADES FOR 2018 AND 2019
NMC says its focus on organic and acquisitive growth is expected to drive stronger than forecast growth until the end of 2019.
The company has forecast an increase in sales growth from 22% to 24% and a rise from $465m to $480m in earnings before interest, tax, depreciation and amortisation (EBITDA) by the end of 2018.
Sales are anticipated to soar by 22% to 24% in the year to 31 December 2019 and EBITDA is forecast to jump between 18% and 20% on the opening of new facilities in the United Arab Emirates.
AJ Bell investment director Russ Mould believes the new forecasts reveal a clear growth trajectory, although there was little news on the joint venture in Saudi Arabia.
