Morgan Stanley upbeat on Australia's Ramsay Health Care; raises PT

Ramsay Health Care

03/10/2023 04:50

** Morgan Stanley expects earnings margin for healthcare
services provider Ramsay Health Care  RHC.AX  to improve, citing
reduced labour supply constraints and cost-saving initiatives  
    ** Brokerage raises PT to A$53.6 from A$49.6
    ** Brokerage forecasts FY24E earnings per share (EPS) growth
of 18% and FY25E EPS growth of 40%
    ** Adds, FY25E EPS growth to be driven by EBITDAR margins
improving for Australia and France
    ** Morgan Stanley optimistic on recovery of earnings margins
in France; estimates underlying EBITDAR margins of 14% in 2H23,
+60bps in FY24E, +130bps in FY25E, and +30bps per annum
thereafter
    ** Three of 16 analysts rate stock "buy", 12 "hold" and one
"sell"; their median PT is A$55.95 – LSEG data
    ** RHC down 20.7% YTD, as of last close

 (Reporting by Adwitiya Srivastava in Bengaluru)
 ((Adwitiya.Srivastava@thomsonreuters.com;))