Morgan Stanley upgrades rating for Aussie pathology firm Healius

Healius

27/11/2023 02:20

(Updates with milestone, change of chairperson)
    ** Shares of Australian pathology firm Healius Ltd  HLS.AX 
rose as much as 8.1% to A$1.405, their highest level since Nov
17
    ** HLS top gainer in the ASX 200 benchmark index  .AXJO 
    ** On track to gain for the third straight session
    ** Analysts at Morgan Stanley see earnings per share risk
for Healius, however, "upon a successful capital raising,
leverage should no longer be an overhang on the shares"
    ** Brokerage upgrades stock rating to "Equal-weight" from
"Underweight"
    ** Morgan Stanley says long-term growth rate assumption of
2.5% remains unchanged; upbeat on co's stock trading near
current price target of A$1.30
    ** HLS on Monday says Chair Jenny Macdonald will not stand
for re-election; non-executive director Kate McKenzie to be
appointed interim chair
    ** Stock has lost nearly 60% since Macdonald took over as
Chair on Sept. 19, 2022
    ** One of 10 analysts rate stock "buy", 7 rate "hold" and 2
rate "sell" or lower; their median PT is A$1.47 - LSEG data
        ** Stock down 54.3% YTD as of last close

 (Reporting by Sameer Manekar and Shivangi Lahiri in Bengaluru)
 ((Shivangi.Lahiri@thomsonreuters.com;))