Ramsay Health Care falls as brokers express concerns on French business

Ramsay Health Care

29/11/2023 24:23

(Updates with share moves and comments from Macquarie)
    ** Shares of Australia's Ramsay Health Care  RHC.AX  fall as
much as 1.9% to A$48.39, hitting their lowest since Oct 30
    ** Citi sees the country's largest hospital operator 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 
    ** Analysts at another brokerage Macquarie, keep PT
unchanged but also flag challenges across operations in France
        ** In France, RHC noted a continuation of inflationary
pressures, with lower cost compensation expected in 1H24 -
Macquarie 
    ** Three of 15 analysts rate the stock "buy", 10 "hold" and
two "sell"; their median PT is A$53.50 – LSEG data
    ** Stock down 23.8% this year, as of last close

    ($1 = 1.5042 Australian dollars)

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