Citi cuts TP on Australia's nib Holdings, flags uncertain outlook for health insurance business
BUZZ-Citi cuts TP on Australia's nib Holdings, flags uncertain outlook for health insurance business ** Citi downgraded Australia's nib Holdings NHF.AX to "Neutral" from "Buy", citing uncertainty around the profitability outlook for its arhi health insurance business
** Brokerage cuts co's target price to A$7.15 from A$7.80 per share
** Citi also reduced its EPS forecast by 4% for FY27 and 6% for FY28
** Analysts at Citi expect co's flagship arhi business gross margin to be at the lower end of management's target range, whereas previously it expected the high end
** "arhi's outlook appears more uncertain than we and the market thought, with industry pressure seemingly impacting both margin and top line," says Citi
** Six of nine analysts rate the stock "buy" or higher, two "hold" and one "sell" or lower; their median PT is A$7.85 – LSEG data
** Stock down 2% YTD, as of last close
(Reporting by Shravya Marakini in Bengaluru)
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