Australia's Regis Healthcare falls as Morningstar, Jefferies, Macquarie trim PT

Regis Healthcare

23/09/2025 01:30

Updates with moves, Macquarie comments

** Shares of Australia's Regis Healthcare REG.AX fall as much as 8.1% to A$6.250, their lowest level since April 7

** Morningstar, Jefferies flag headwinds after Regis Healthcare said on Monday the government's 4.7% base price increase for aged care classification falls short of expectations and projected FY26 underlying EBITDA to rise 3%-7% from FY25

** Morningstar cuts its fair value on the aged care operator by 6% to A$7.40/shr, due to lower funding partially offset by accommodation deposits

** However, the investment research firm says shares trade at a modest 8% discount to its valuation, with the market likely too "pessimistic"

** Jefferies cuts PT to A$8.40 from A$9.90 while retaining a "buy" rating, says govt funding changes prompted REG to guide FY26 EBITDA below expectations

** Brokerage Macquarie trims PT to A$7.90 from A$8.90

** Cuts FY26, FY27 and FY28 EPS estimates by 13%, 7% and 2%, respectively, due to lower-than-expected increase in funding

** YTD, stock up 7.3% including session's losses

 (Reporting by Kumar Tanishk and Roshan Thomas in Bengaluru)

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