Jefferies cuts PT on Regis healthcare as co identifies underpayments to staff

Regis Healthcare

09/08/2021 22:24

** Jefferies cuts price target on Regis Healthcare  REG.AX 
to A$1.85 from A$2.00 and maintains a 'hold' rating  
    ** The aged care services provider on Monday said it
identified potential undepayments ranging from A$30 mln ($22.01
mln) to A$40 mln due to both current and former employees 
 urn:newsml:reuters.com:*:nASX7kR5v8
    ** REG estimates there will be a negative impact of A$6 mln
to A$7 mln on FY21 profit before income tax. 
    ** Brokerage says it has allowed for abnormal remediation
costs of A$7 mln on REG, which implies higher employment
expenses going forward 
    ** Trims co's FY22 and FY23 net profit estimate by 25% and
28%, respectively 
    ** Four of six analysts rate the stock 'buy' or higher and
two rate it 'hold', their median PT is A$2.56 - Refinitiv Eikon 


($1 = 1.3631 Australian dollars)

 (Reporting by Tejaswi Marthi in Bengaluru)
 ((tejaswi.marthi@thomsonreuters.com))