Healthcare firm is rated a buy

Mar 15 2008 by Chris Knox, The Journal

IN the regional portfolio, investment house Goldman Sachs stated that it has a buy rating on local healthcare company Southern Cross and a price target of 480p.

Southern Cross is a leading provider of residential care homes across the UK.

Last month the Darlington-based company announced that trading over the first quarter of the year has been strong and in line with expectations.

Looking forward, Southern Cross plans to add an additional 2,000 beds to the business by the end of the year.

Another step towards this goal was taken earlier this month when Southern Cross announced the purchase of Portland Group for £42m, adding 422 beds and expand the group’s day care activities.

Southern Cross’ share price moved higher over the day by 0.25p to close at 351.25p.

It was a mixed day for the region’s housebuilders.

Earlier this week housebuilder Bovis Homes stated that the outlook for the housing market is increasingly challenging and called for an interest rate cut.

The share prices of the leading housebuilders dipped on the announcement.

However, Barratt Developments retook some of the lost ground over the trading session, moving higher by 3.5p to close at 395.75p.

One of the best performances in the Regional Portfolio was recorded by Tanfield Group.

The maker of zero emission electrical vehicles motored higher by 4.25p or some 4.68% to close the trading day at 95p.

Anthony Peart Anthony.Peart@Brewin.co.uk