Nomura upgrades Fortis Healthcare to "buy"

Nomura upgraded Fortis Healthcare to "buy" from "neutral", but cut its target price to Rs 124 from Rs 170, citing recent underperformance and improvement in return ratios.

"Near-term ROE (Return on equity) is low at 1-3 percent but we expect average incremental ROE over the next five years to be 33 percent," said Nomura in a report.

The investment bank added that in its view Fortis has come to the end of an investment cycle and will now focus on cash flows and profitability.Reuters[/caption]

The investment bank added that in its view Fortis has come to the end of an investment cycle and will now focus on cash flows and profitability.

Reuters