Liberum Capital has pulled back its rating for Primary Health Properties PLC (LON:PHP) to ‘hold’ from ‘buy’ on valuation grounds following the recent completion of its merger with MedicX.
The City broker has cut its stance for the FTSE 250-listed firm despite raising its target price to 130p from 125p, with the shares currently trading at 127.20p, down 1.2% on Friday’s close.
WATCH: Primary Health completes on MedicX merger, boosts Irish portfolio
In a note to clients, Liberum’s analysts said: “The addition of MedicX’s best in class assets complements an already high-quality portfolio and accelerates benefits of scale.”
They added: “We believe the enlarged group is well placed to profit from an increasing shift towards primary healthcare as well as growth opportunities in Ireland.”
However, the analysts noted that a 16% rise in PHP’s share price in the year-to-date has left the shares looking fairly valued.