Australian healthcare provider Ramsay falls; Morningstar says shares undervalued

Ramsay Health Care

06/01/2025 04:12

** Shares of Australia's Ramsay Health Care  RHC.AX  fall as
much as 1.4% to A$34.14
    ** Morningstar says RHC shares are now trading at about a
40% discount to its A$62 fair value estimate; says shares are
undervalued
    ** Investment research firm retains its earnings estimates
for the healthcare provider till FY29
    ** Says while margins are constrained by digital expenses in
the near term, it expects this to drive cost efficiencies in
longer term by optimising staff levels and reducing
administrative paperwork
    ** Says expects margin expansion as activity trends in
higher-margin work recover and staff availability increases
    ** Forecasts FY25 underlying EBIT to grow by 5% to A$1.09
bln ($678.20 mln)    
    ** RHC fell 34.3% in 2024

($1 = 1.6072 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))