Max Healthcare share price: Analyst upgrades stock to buy, sees 18% upside

UBS has upgraded Max Healthcare to a ‘buy’ rating from ‘neutral’ and raised its target price to ₹1,200 per share, citing strong growth potential and efficient execution of expansion plans. The shares of the company gained 3%  early in the trade on Tuesday, February 18.

The brokerage firm believes the market is yet to fully appreciate Max Healthcare’s visibility on bed additions, which it sees as a key driver for the company's valuation. UBS also highlighted the hospital chain’s ability to ramp up occupancy rates and achieve break-even efficiently.

Max Healthcare’s asset-light model and strong operational cash flow (OCF) generation further bolster its investment case. UBS expects the company to generate ₹8,000 crore in OCF over FY25-28, which will help fund its capacity expansion.

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