Primary Health Properties a 'clear winner' from Budget, says Shore Capital

(Sharecast News) - Shoer Capital has reiterated its 'buy' rating for Primary Health Properties, saying the primary healthcare-focused real estate group is a "clear winner" from new NHS investments announced in this week's Budget. The NHS has been highlighted as a key beneficiary from the increased investment to be funded from the higher taxes unveiled by chancellor Rachel Reeves on Wednesday.

"The publication over the summer of a ten-year plan for the NHS pivots on three key points: bringing increased provision of care into the community via the establishment of Neighbourhood Health Centres; increasing the utilisation of digitalisation within the NHS; and moving the emphasis from cure to prevention," Shore Capital said in a research note on Thursday.

"This all aligns well to us with PHP's portfolio positioning and, in our view, should be supportive for the wider growth ambitions in the sub sector."

Meanwhile, the broker hailed the recent news of the CMA clearing PHP's takeover of Assura, with PHP now well positioned to partner with the NHS in its delivery of new primary health facilities.

"[The merger] now creates a new powerhouse primary healthcare REIT in the British Isles with a portfolio value of c.£6bn and c.1,100 assets - capable of benefiting shareholders with increased scale, synergies and positive operational gearing," the broker said.

The stock was up 0.8% at 97.1p by 1227 GMT, adding to the 1.2% gain made the previous day.