Morgan Stanley downgrades Australia's Ramsay Health Care to Underweight, cuts PT

Ramsay Health Care

01/10/2025 23:52

** Morgan Stanley downgrades hospital operator Ramsay Health Care RHC.AX to 'Underweight' from 'Equal-weight', slashing its price target to A$31.30 from A$36.70

** Brokerage flags slowing private hospital episode growth in Australia and negative utilisation trends in 2H25

** Expects further EBIT margin pressure in Australia and France, with FY27–28 EPS forecasts 7–13% below Visible Alpha consensus - MS

** Adds, while a potential divestment or in specie distribution of RHC's French unit Ramsay Sante GDSF.PA could unlock upside, timing remains uncertain

** 1 of 14 analysts rate the stock "buy", 12 as "hold" and 1 as "sell"; their mean PT is A$36.40 – LSEG data

** Stock has lost 5.8% YTD as of last close

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))