Renaissance Capital has initiated coverage of Cleopatra Hospital, naming the hospital group one of its two top healthcare picks in emerging / frontier markets. The EM-focused investment bank has a “buy” recommendation on the company and a target price of EGP 11.95 per share, writing: “As Egypt’s largest private healthcare provider, we believe it is well positioned to capture the country’s structural top-down growth in an environment of low (but accelerating) insurance penetration, high disease prevalence and poor standard of care.” CLHO trades at a 55% discount to its emerging and frontier peers on 2017E P/E. Rencap says Cleopatra has “embarked on a short-term Marshall Plan to uplift and streamline the standard of services group-wide. While we expect variability in profitability to remain among its four hospitals owing to differences in case mix, we expect the group’s large scale will solidify its position vs competitors, insurance providers and suppliers.” In short, it says, Cleopatra is “One of the best Egypt plays.”