A: Thanks for the question and apologies for the delay in reply.

To be honest, I haven’t really liked the sector (aged care) due to the high level of regulation and unclear case around consolidation benefits.

However, the market does and Japara Healthcare (JHC) has performed quite strongly.

It looks like Japara was a little overbought and pulled back as a result of profit taking. It is still trading on a pretty high multiple – 24.7 times FY16 earnings, and 20.8 times FY17 earnings.

On Thursday, Macquarie downgraded Japara from outperform to neutral, largely on the back of the run up in its share price.

Overall, the brokers are marginally positive – sentiment rating of +0.4 (scale -1.0 is most negative, to +1.0 most positive). Consensus target price is $3.27.

Japara put out an interesting presentation on the industry funding model – if you haven’t seen it, have attached the file.

Bottom line – I quite like the stock, but at the current price, see it as being a touch expensive.