Ramsay Health Care (ASX:RHC) share price on watch after broker upgrade

The Ramsay Health Care Limited (ASX: RHC) share price has been an underperformer over the last 12 months.

However, one leading broker believes its shares could soon be heading notably higher from here.

What happened?

This morning analysts at Goldman Sachs upgraded and added the private hospital operator’s shares to its conviction buy list with an improved price target of $70.00.

This implies potential upside of almost 20% over the next 12 months including the 1.4% dividend yield Goldman is forecasting.

Why is Goldman Sachs positive on Ramsay?

According to the note, Ramsay’s shares are currently changing hands at 8.1x earnings before interest, tax, depreciation and amortisation (EBITDA) for an 8% EBITDA compound annual growth…