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The NIB Holdings Limited (ASX:NHF) share price saw a notable 4.52% increase, reaching $7.98, and brokers are expressing optimism about continued growth in 2024. This positive trend aligns with the broader performance of ASX healthcare stocks. Private insurance companies have experienced an upswing since the onset of the pandemic, as indicated by new data from APRA highlighting a rise in the number of Australians with hospital coverage. Presently, 11.81 million Australians have hospital coverage, reflecting an increase from 11.23 million in December 2019.
The trend suggests that many Australians consider health insurance worthwhile due to long waiting lists for elective surgeries, specialist appointments, and reduced Medicare bulk billing. In the fiscal year 2023, ASX NHF reported a 10.9% revenue increase to $3.1 billion and a 42.8% rise in net profit to $191 million.
Broker Recommendations and Price Targets:
Goldman Sachs, a top broker, rates NIB as a buy and has set a 12-month price target of $8.40. The broker highlights several factors supporting this rating:
- Defensive exposure to the private health insurance sector, experiencing favorable operating trends.
- A low claims environment with no immediate indications of a bounce back in claims.
- Provisions for doubtful claims (DCL) proving redundant, suggesting a sustained low claims environment.
- Significant policyholder give-back incentives indicating a claiming environment well below expectations.
- A strong recovery in non-resident volume post-COVID-19 due to the return of international students, workers, and visitors.
Citi has also upgraded NIB shares to a buy rating with a $8.35 share price target.
Important Dates for NIB Investors in 2024:
NIB released its financial calendar for 2024, highlighting key dates for investors to note:
- Half-Year Results Announcement: 24th February 2024
- Record Date for Interim Dividend: 1st March 2024
- Interim Dividend Payment Date: 20th March 2024
- Full Year Results Announcement: 23rd August 2024
- Record Date for Final Dividend: 6th September 2024
- Final Dividend Payment Date: 27th September 2024
