The Medibank Private Limited (ASX: MPL) share price could hit a new, all-time high in 2022 according to a leading broker.
Medibank is the largest private health provider in Australia with its Medibank and ahm brands.
What broker has high expectations for the Medibank share price?
Credit Suisse currently rates Medibank as a buy with a price target of $3.70. That implies the Medibank shares could rise by close to 10% over the next year, if the broker is right.
If the Medibank share price did indeed reach $3.70 in 2022, then that would be a new all-time high for the business.
Credit Suisse notes that Medibank continues to grow its total number of policyholders, which is helping it increase its market share.
The broker referenced Medibank's latest update at its annual general meeting (AGM) when coming up with its recent thoughts for the business.
AGM update
Medibank is committed to returning any permanent net claims savings due to COVID back to customers and it expects to confirm the next segment of customer support before the end of the year.
Management said that its strong policyholder growth has continued with the addition of around 21,000 policyholders in the first four months of this financial year.
Due to that above growth, and the assumption that industry participation growth will be slower in FY22 relative to FY21, it's now aiming to grow by at least 3% in FY22, including growth in the Medibank brand.
On an underlying basis, Medibank is expecting average net claims per policy to be in line with the second half of FY21, or 2.4% among resident policyholders.
Medibank also highlighted that it's transforming into a health company, with preventative health and new models of care enabling the business to provide people with even more support to manage their health and wellbeing.
The digital offering is a key part of Medibank's plan to support day to day engagement with customers, allowing for a more personalised and connected health experience.
Medibank share price valuation
Based on the broker Credit Suisse's profit projections for FY22, the Medibank share price is valued at 21x FY22's estimated earnings with a grossed-up dividend yield of 5.4%.
