Medicover: Fundamentally Strong, Defensive Investment

Redeye reiterates its fundamentally positive stance on Medicover and raises estimates and valuation following strong full-year 2019 results. Most importantly, we believe the top line will grow at a good pace going forward and are looking for organic growth of +14% per year. As the successful Indian acquisition will be fully consolidated this year, 2020 revenues are likely to jump an impressive 33% surpassing EUR 1bn. We also highlight the defensive qualities of the Medicover case in the current market environment and look at Medicover’s various locations in India, the Indian economy and healthcare system, and the main competitors.