Citi sees higher tax rate in France for Australia's Ramsay Health Care, cuts TP

Ramsay Health Care

28/11/2023 20:16

** Brokerage Citi sees Australia's Ramsay Health Care 
 RHC.AX  facing lack of inflation subsidy and higher tax rate in
France in FY24 
    ** Brokerage cuts FY24-FY26 EPS forecasts by 27%, 8% and 5%,
respectively  
    ** Citi cuts target price to A$50 from A$50.50, keeps rating
at "neutral" on lack of visibility on the timing of margin
recovery in Europe and UK 
    ** However, brokerage views the sale of Ramsay Santé by co
as a potential logical step, adds co's FY24 interest expense
will be at the low end of the forecast range of A$570 mln to
A$600 mln ($378.94 mln-$398.88 mln)
    ** Three of 15 analysts rate the stock "buy" , 10 "hold" and
two "sell" ; their median PT is A$53.50 – LSEG data
    ** Stock has fallen 23.8% this year, as of last close


($1 = 1.5042 Australian dollars)

 (Reporting by Nausheen Thusoo in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))