Morgan Stanley cuts rating for Australia's Healius on earnings uncertainty

Healius

12/01/2024 24:48

** Morgan Stanley downgrades Healius  HLS.AX  to
"Underweight" from "Equal-weight" due to uncertainty on co's
earnings 
    ** HLS shares fall as much as 6.7% to A$1.475, their biggest
intra day loss since Jan. 3, 2024
    ** Brokerage says co's FY24 guidance still looks too high
with co expecting 1H24 EBIT to be between A$14 mln ($9.37
mln)and A$17mln and implied 2H24 EBIT between A$78 mln and A$91
mln 
    ** Brokerage sees EBIT of A$74 mln for FY24 which is below
HLS's guidance range of A$95 mln-A$105 mln 
    ** Morgan Stanley sees risk to consensus EPS forecasts for
co; keeps price target unchanged at A$1.30
    ** One of 11 analysts rate HLS "Buy", seven "Hold", three
"Sell" and "Strong Sell"; their median PT is A$1.47– LSEG data
    ** HLS dropped 42.5% in 2023

($1 = 1.4939 Australian dollars)


 (Reporting by Megha Rani in Bengaluru)
 ((Megha.Rani2@thomsonreuters.com;))