MS downgrades Australia's Ramsay Health Care to 'underweight'; stock hits 12.5-year low

Ramsay Health Care

02/10/2025 02:29

Adds share moves and updates YTD

** Shares of Australia's Ramsay Health Care RHC.AX fall as much as 6.1% to A$30.57, their lowest since March 2013

** Morgan Stanley downgrades hospital operator Ramsay Health Care 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

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

** 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 rates the stock "buy", 12 "hold" and 1 "sell"; their mean PT is A$36.40 — LSEG data

** RHC down 8.4% YTD, including session's moves

(Reporting by Kumar Tanishk in Bengaluru)

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