Australia's Ramsay Health Care falls as Jefferies flags labour cost risks

Ramsay Health Care

01/06/2026 05:59

Updates
** Shares of Ramsay Health Care RHC.AX fall as much as 3.2% to A$36.8, their lowest point since May 11
** Stock logs its largest intraday pct loss since May 5
** Jefferies sees labour cost pressures from Australia operations in CY26, along with a negative EBIT impact of A$37 million ($26.53 million) on contract for Joondalup, Western Australia
** Brokerage, however, expects activity growth and higher acuity for the hospital chain operator in the second half of FY26
** Forecasts remain unchanged, with Jefferies estimating ~25% of company's historical Australian annual revenue expansion to come from treatment prices
** Keeps price target and rating unchanged at A$40.50 and "hold"
** Stock up 5.7% YTD, including the day's moves
     
($1 = 1.3949 Australian dollars)

 (Reporting by Nikita Maria Jino and Anjali Singh in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))